Jingle bells won't be the only things ringing this holiday season. According to the National Retail Federation (NRF) 2005 Holiday Consumer Intentions and Actions Survey, the average American consumer plans to spend approximately $740 this holiday season, up 5.1 percent from the previous year. Holidays -- once a time for family, food and gifts -- are now prime seasons of financial peril. "'Sale' doesn't always mean 'savings,'" said Claire Parins, legal content editor for Socrates. "Most Americans use credit cards without thinking of long-term effects." When using credit cards to purchase gifts and decorations, it's easy to forget how much money has been spent. If consumers don't consider their financial position and set aside post-holiday money for bills, they could find themselves in trouble -- trouble that may entail bankruptcy. With the recent enactment of new bankruptcy laws, consumers will find resolving financial difficulties more troublesome. "It's essential to get out-of-control finances on track before hitting malls and Main Street," Parins suggested. She notes that creating a Holiday Budget Plan will help provide a guide for the next two months, but also throughout the New Year. Creating a Holiday Budget Plan can be very simple: -- List your monthly living costs, including essentials like house or rent payments, food, transportation to work and utilities. Tallying these regular living expenditures help in estimating how much "spending cash" you have. -- Prioritize what needs payment first. Housing costs are foremost; credit card and medical debt can wait. Prioritizing essential payments will help in creating a plan beyond month-to-month. -- Once you detail a cost structure, create a gift list of who you want to give gifts and what you plan to purchase. Cut back on gifts for "social" friends; give a card or better yet, be creative -- buy supplies in bulk and make homemade individualized gifts. -- Make a donation in honor of family members or friends instead of individual gifts. The holidays are about spirit and giving; sometimes knowing people think about you is the best gift. If credit debt is a problem, consumers may need additional help beyond a budget plan. Several do-it-yourself (DIY) options can assist with getting personal finances back on track. Socrates' Credit Repair Kits and software packages help consumers take control of their credit by assisting in accessing credit reports, removing negative marks, adding positive indicators and turning bad credit into good credit. "DIY products like budget sheets, bankruptcy kits and credit repair software educate consumers while saving money on legal fees when dealing with these financial concerns. However, Socrates urges consumers to be cognizant of spending levels before debt looms closer," said Parins. About Socrates Socrates is the leading brand of needed know-how solutions for individuals and small businesses. The Socrates brand offers thousands of relevant, compliant, comprehensive and lower cost do-it-yourself alternatives to high-cost legal and professional services. These forms, kits, software, guides, books, downloadables and completion services help consumers solve everyday legal, finance and business management matters themselves. Socrates offers its products through retailers, marketing partners and direct online through http://www.Socrates.com . CONTACT: Michael Shmarak 312.587.7677

Source: PR Newswire