Gift-giving time pressures those paying off debt - The Bensons

By Kara McGuire, Star Tribune

Last update: September 8, 2007 - 9:18 PM

For Graham and Tracy Benson, buying for immediate family members means nine gifts under the tree if their seventh child, due Christmas Day, is included in the count. The family already has made changes.

For years, Tracy, 42, and Graham, 41, have been spending as much as $1,000 more per month than their income. The biggest change: Graham's part-time job as a package handler for FedEx, which he works after his full-time copy-writing job.

That means $160 more per week in income, but he gets a mere five hours during the work week with his children, whom he misses dearly.

Since bringing in the extra income, they've managed to pay down $500 of their $32,000 in credit card debt, as well as some outstanding medical bills and some new ones, too.

The bills pile up quickly with Tracy frequenting doctors and her children getting the typical ailments - most recently strep throat. Plus, Graham's 20-year-old van needs about $800 in repairs.

Then there's Christmas.

During a phone conversation, Tara McCarthy, the Benson's financial counselor, tells them that establishing a gift-giving budget is a must.

After going over their cash flow with McCarthy, president of Financial Rehabilitation Inc., and discussing their expenses, the Bensons budget $500, about $300 less than they normally spend. They'll use money from Graham's second job to buy gifts this year. "I am very conscious that any money we spend keeps Graham working the second job longer," Tracy says.

She's being creative, not opposed to giving gifts from a stockpile of summer garage-sale finds, scouring for free items online, and using other resources in the community.

Tracy is used to shopping early and charging things on a credit card. But this year, "Tracy and I are going to stick with cash," Graham says. Waiting to finish the shopping until close to Christmas day will be different this year, but necessary with the all-cash plan.

"We'll definitely have fewer presents without using credit, but we'll be enjoying other things more this year," Tracy says. "We are all excited about the baby." And excited about time off with the entire family at their home in Bloomington.

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