MARINE CORPS LOGISTICS BASE BARSTOW, Calif. -- This holiday season, millions will flock to stores in search of the perfect gifts for their loved ones. But behind every register, lurks a monster many people aren't afraid of this season.
A dizzying array of seasonal promotions for shiny new plastic credit cards and rewards programs can be found all over stores, but are they really all they are cut out to be?
"Seasonal promotions are bad because people are feeling that they have to give because of the holiday season,"said Gunnery Sgt. Amanda Quantz, MCLB Barstow's financial counselor and staff noncommissioned officer in charge of Marine and Family Services. "Credit companies prey on the emotional and psychological aspects of the holidays that make us vulnerable to their scams."
With the shopping rush, many customers will sign credit contracts without even reading them.
Because Americans are a society of convenience who want to buy things now and pay for them later, they easily fall into this trap, said Quantz.
"Credit seems like a quick and easy fix," she said, "but could end up costing you much more."
To avoid such scams, there are several things Quantz suggests consumers can do to protect themselves.
- Research the company and make sure it is valid and legitimate.
- Look at the interest rate.
- Have a budget in place to see how much money comes in and how much can be spent without causing debt.
In addition to the tips listed above, the most important is read the contract before signing it because some people get stuck with a credit plan with a high interest rate and cannot get out of it, she said.
Other pitfalls people get themselves into during the holiday season are signing up for credit cards that offer free gifts, but what they don't advertise is their high interest rates. Another scam asks people to donate to organizations, but avoid doing so unless it is a known organization with a good reputation.
"You don't want to put money in to a jar and not know where that jar is going," said Quantz.
If anyone thinks they have been subject to such a scam, contact Quantz at 577-6533, who can help set up a budget, try to lower interest rates and help set up payments.
"Before getting in trouble [with credit], set up a budget so you can see in writing, in black and white, where your money is going before spending more," she said. "Also be aware that there are scammers out there that know how to get your money."