'TIS TIME TO PAY IN CASH DEBT ADVISERS WARN SHOPPERS AGAINST BUILDING CREDIT CARD DEBT.

Byline: Pam Park Staff Writer

Having a realistic budget and not loading up on credit card debt over the holidays is key to making the new year look brighter, debt counselors say.

``I certainly have a budget, so I know what I'm going to spend. I'm pretty good about sticking to it,'' said Beth Whitehead of West Los Angeles.

Whitehead, who was shopping for her sisters Tuesday at Sephora at Sherman Oaks Fashion Square, said this has been a good year for her and she isn't too concerned about overspending.

``I'm getting all the fun brands my sisters can't get in Canada,'' she said. ``I'll share the wealth a little bit.''

Mary James of Van Nuys and Lindsey, her 6-month-old daughter, were shopping at Lavenders' Hallmark at Fashion Square. James said she likes to pay cash to avoid credit card interest.

She said she was pleasantly surprised that the economy had done so well this year. Nevertheless, her family will spend significantly less this holiday because she is staying home with the baby.

``That's half the salary, so we're doing a budget,'' she said.

Shoppers who spend beyond their means rarely go into the holidays with a budget or a plan, said Richard Pittman, director of counseling and housing at Consumer Credit Counseling Service of Los Angeles.

``Historically, people who have credit problems don't plan well,'' Pittman said. ``How few of them have given any thought to holiday spending?''

Pittman recommends people spend a maximum of 1 percent to 2 percent of their gross income on the holidays, and that should include everything - travel, entertainment, holiday cards, office gifts and any charitable contributions that haven't been budgeted for.

``Most people spend well beyond that, and it comes back to lack of planning,'' Pittman said.

Darrel Cole of Van Nuys said he'll probably spend more than the maximum credit counselors recommend, but he likes to pay cash.

``I like to keep the credit card more or less for emergencies - like when I'm short of cash,'' Cole said.

Charge card balances are a major part of nonmortgage consumer debt, which has risen from $119 billion at the end of 1968 to $1.456 trillion in June 2000, the Federal Reserve Board reports.

Cole hopes to spend less for gifts this year because his family just bought a home and they are trying to ``get comfortable again'' after coming up with the down payment. He also tries to train his children not to expect as much at Christmas if they've been asking for things all year.

``We let them know that the more they buy now, the less they get at Christmas,'' Cole said.

Joyce Emerson of Granada Hills said her family is fortunate that they don't have to count every penny, but she expects to buy a little less this year.

Emerson uses a credit card for her purchases because she gets airline miles as a bonus.

``I use the credit card and pay it off each month. I just do it for the miles, otherwise I'd use cash or check,'' she said.

The American Express Retail Index predicts that the average consumer holiday spending will reach $1,684 this season, up 8 percent over last year. The poll showed the increase would be largely driven by people who intend to splurge on a special person.

People can get caught up in the moment and get in trouble, Pittman said. They see everybody else buying, and they load up, or they impulsively punch a button on the computer and worry about paying for their purchases later, he said.

Usually about 30 percent of consumers have done their major shopping by Dec. 1, and that leaves about 70 percent who will buy in December, Pittman said.

``There's still time to save themselves.''

DO IT RIGHT THIS TIME

With the shopping season in full swing, here are some tips to avoid the January bill blues.

--List your gifts: Writing out a spending plan, with specific gifts and dollar amounts, will help you avoid impulsive purchases that could break your bank.

--Go in with a yule pool: Parents and grandparents, for instance, can pitch in for a teen-ager's computer, stereo or other big-ticket item. This also works for smaller items that can be bought in bulk at discount warehouses, such as wrapping paper.

--Master the card: Use cash or checks whenever possible. Take only one, low-interest, credit card with you and . . .

--Pay it off: Get rid of the holiday debt as soon as possible, no more than 90 days, to avoid excessive interest charges.

--Same time next year: You could be in great shopping shape if you start saving for the next holiday right after this holiday. For the average $1,684 spent on gifts this year, you would have needed to tuck away $140 a month.

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Photo:

(color) Mary James shops with her daughter, Lindsey, 6 months , at Sherman Oaks Fashion Square.

Andy Holzman/Staff Photographer

Box: DO IT RIGHT THIS TIME (See text)