Watching Your Wallet: Holiday shoppers urged to watch spending as debt risks rise

FRESNO, Calif. (KFSN) -- The holiday shopping season is in full swing, and experts warn that overspending now could lead to financial stress in the new year.

Michael McAuliffe, president of Family Credit Management, says one of the biggest mistakes consumers make is failing to track their purchases.

"One of the big problems we see is one people not keeping track of it at all. They're just spending money and getting gifts," McAuliffe said.

He advises treating "Buy Now, Pay Later" programs like any other debt.

"The 'later' is going to come; and it's going to be today and are you going to be ready for it?" he said.

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McAuliffe recommends setting a firm spending limit and avoiding what he calls "shop creep," where small increases add up over time.

"It just starts to creep up and now your $40 is $60 and then $80. You multiply that by family members and it turns into real money," he said.

He also cautions against buying early just because it's early or purchasing items simply because they're on sale.

"It's not a good deal if you weren't going to buy it anyway," McAuliffe said.

Instead, consider giving experiences that focus on connection rather than consumption. Adobe Analytics reports consumers spent $88.7 billion online in October alone, signaling an early start to holiday shopping.

McAuliffe says it's not too late to rein in spending before bills pile up in January and February.

"One of the busiest times of the year is January and February when all of the bills come home. And then it's now what do I do? So as soon as you say things have gone off track a little bit, be mindful, buckle down and stop spending," he said.

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