Credit card shoppers may lose money at holiday sales

The Friday after Thanksgiving kicks off the holiday shopping season. Store promotions and sales lure millions nationwide, but is anyone really saving by shopping these sales?

Mike Sullivan, director of education for Take Charge America, a national nonprofit credit counseling agency, said sale shoppers may be getting duped.

"If you don't need an item, don't buy it just because it's on sale," he said.

"Many shoppers who seek out bargains end up purchasing items they wouldn't normally buy if they weren't on sale. And what's worse, shoppers who charge sale items thinking they're getting a deal," Sullivan said. "When you add interest rates to the sales price, it can far exceed the original purchase price."

According to the National Retail Federation, U.S. shoppers are

expected to spend $791.10 each on holiday merchandise this year. Sullivan said much of that will end up on credit card bills, so that $791.10 could end up costing hundreds of dollars more in the end.

Sullivan described five of the mostwanted gifts this holiday season, iPods, event tickets, cruises and plasma TVs, and calculated the actual amount you'd end up paying on your credit card if you only make the minimum payment.

Sullivan added that you can still feel the credit card pinch, even if you don't purchase high-ticket items. "A lot of little purchases can add up very quickly," he said.

"Before making a purchase on your credit card, ask yourself if you are willing to pay 18 percent more than the purchase price. If you're not, you probably don't need it." His calculations apply to credit

cards with an 18 percent interest rate. Minimum payments are considered 2.5 percent of the total balance.

Founded in 1987, Take Charge America, Inc. is a nonprofit organization headquartered in Phoenix. TCA offers a variety of services including financial education, credit counseling and debt management. To learn more, call (800) 823-7396 or visit www.takechargeamerica.org.