Enjoy The Season Of Giving Without Credit Card Debt

A charitable donation in the name of friends or relatives for Christmas can help you avoid overspending during the holidays. By making donations to charities, you will not rack up substantial credit card debt while running around seeking gifts for everyone on your holiday gift list.

Many Americans have a cause that is near and dear to their hearts, such as animal shelters and food pantries for the needy. Americans gave more than $295 billion last year in charitable donations, according to Giving USA Foundation, which tracks giving trends. However, as Americans’ disposable incomes dwindle due to rising costs for gas, food and housing, charities are feeling the pinch as donations decrease amid an uncertain economy, according to various news reports.

Essentially, many charities will need extra financial help this holiday season and year round. Your friends and relatives will probably appreciate you funding a donation in their names. And you will not feel the sting of holiday credit card debt in January or February after rushing around to find gifts.

Many consumers seek debt relief, such as debt consolidation or debt settlement, after overspending during the holidays. Holiday commercials are already appearing on television as retailers are girding for a lukewarm shopping season. Shopping for Christmas gifts are fine, as long as you set a budget and stick to it.

A gift to a charity on behalf of others is just another option. An ancillary benefit is that you can get a tax deduction on many charitable giving. You can write a check or money order for $10, $20, $50 or however much you desire to a charity of choice on behalf of the gift recipient. This way, you will save gas by not running from store to store as Christmas approaches.

While there are very worthwhile charities, other operators claim to be charitable while operating scams. But here are some useful tips to make sure your money goes to the right purpose.

• Check references with the Better Business Bureau
• See if a charity has filled out a 990 Form with the Internal Revenue Service. Charities with more than $25,000 in contributions must fill out this form, which offers a modicum of legitimacy. Many organizations have this form on their Web sites.
• If the charity is in your area, attend one of its meetings and possibly ask their beneficiaries about them.

Author bio: Brian Williams, a graduate of the University of Texas at Arlington, has 11 years’ experience writing and editing at daily newspapers in Texas. Learn more about Credit Solutions. Credit Solutions is your alternative to debt consolidation.