Myvesta News Release

ROCKVILLE, Md. — According to the third annual holiday survey conducted by Myvesta.org, a financial crisis and treatment center, the average American plans to spend 37 percent less on holiday gifts this year. The average holiday shopper will spend $773, down from $1,220 last year. Forty-four percent plan to spend under $500.

"Due to recent events and the economy heading downhill more people are holding onto their cash rather than spending it at the mall," said Steve Rhode, president and co-founder of Myvesta. "It's not surprising that consumers are planning to spend less this holiday season."

As the appetite to spend during the holidays seems to have tapered off so has the urge to add new debt to already high credit card balances. According to Myvesta's national survey the average individual credit card debt fell 14 percent from $2,814 last year to $2,411 this year.

"We're seeing people get more vigilant about paying down debt right now. For some, it's a mission," Rhode said. "But for those who have struggled with debt problems in the past, things are getting much worse." In the past year Myvesta has seen the average credit card debt of their most serious clients balloon from $17,800 in 2000 to $48,200 in 2001.

"When our average clients' credit card debt jumps over $30,000 in one year, it's a clear sign that people are struggling," Rhode said. "In the past year many people have pared down expenses in a withering economy, but we're seeing others do just the opposite. For some people shopping adds some normalcy to life and helps them feel better in these uncertain times. It can also leave a person or family in financial ruin."

When shopping this holiday season it's important to develop a spending plan and stick with it. "With expectations of consumer spending down for this holiday season, don't be surprised if many stores are having big sales to draw in customers. But remember to buy only what you need and not get drawn into buying more items just because they're on sale," Rhode added.

Some holiday shopping tips from Myvesta include:

• Carry only two cards when shopping. Use one with a zero balance for purchases you will pay off in full. Use the other, low-interest-rate card for purchases you will pay off over three to six months.
• Record all of your purchases in your checkbook register. Even if you don't write a check, subtract the amount of the purchase. That way, when the bill arrives, the money will be in your checking account to pay the bill in full.
• Avoid "skip payment" offers that cause you to pay more interest and face larger bills.
• Avoid "buy now and pay later" offers, which encourage you to spend money you don't have.
• Use a low-rate, major credit card instead of high-rate department store cards.
• Don't apply for department store cards just to get a one-time discount.

The annual Myvesta Holiday Survey was conducted October 26-28, 2001. Some other survey results include:

• Fifty-two percent of respondents say they do not carry a balance on their credit cards. That is up from 50 percent last year.
• Almost 7 percent of those polled say they do not know how much debt they are carrying on their credit cards. Those aged 25-34 have the highest credit card debt with an average of $3,843 on two cards.
• Thirteen percent of those carrying credit cards have five or more cards. Twenty-three percent said they don't carry any credit cards.
• Nineteen percent of those polled said they have no idea of how much they are going to spend on the holidays this year. Five percent plan on spending nothing.
• Those aged 35-44 plan on spending $889 on holiday gifts, the most of any age group.

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Myvesta^SM is dedicated to helping people create healthy financial lives. The organization provides a wide range of materials to inspire and inform people so that they can break down their barriers to financial and personal success. For more information visit Myvesta.org online.