Preparing for the 2008 Holiday Season - Make it Debt Free

For those of us already carrying debt - and trying to pay it off - the holidays are often a source of stress.  How can you buy gifts for everyone on your list without going further into debt?

Ideally, we would all start saving for the holidays as soon as they end the previous year.  Most people don't - or can't - so what's the alternative to keep us from relying on credit cards to get us through the expense of the holidays?

There are still almost four months before Christmas and Hanukkah.  There is still time to do something to prevent a credit card splurge of panic when December comes around and you realize there isn't enough money in the budget to buy gifts for everyone on your list - not to mention wrapping paper, tape, bows, and holiday foods.

Step One:  How much did you spend on the holidays last year?  Be sure to include everything from gifts to food to wrapping paper and decorations.  

Step Two: Cut back on your holiday expenses.  You don't need to buy new holiday decorations every year.  Save the comic section of the Sunday newspapers to use as wrapping paper, or let your children create your own wrapping paper with crayons, stickers and paper. 

Look closely at your gift list.  Are there families you could get a "family gift" for, rather than individual gifts for each family member?  Family gifts are thoughtful and useful, but help the giver save money.  Try fruit baskets, cheeses, family tickets to the movie theater or other event, or hand made treasures.

Step Three: Determine a realistic budget for this year's holiday needs based on the previous two steps. 

Step Four: Divide your total money needs by 4 months to see how much money per month you need to come up with to make it all happen.  To make it easier, you can try:

* buying a few gifts each month instead of waiting until December to purchase them all

* consider getting a part time job or working online to increase your income- try our 101 Ways to Make Money Online for ideas.

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