Holiday Money Management

More often times than not, credit cards are used for holiday shopping. Some individuals promise to pay off any incurred credit card debt in two or three months. Unfortunately, six or more months pass by and individuals find that their holiday credit card debt is still being paid but with interest.

According to a Bank One study, "About 54 percent of U.S. consumers are still paying off credit card debt from the last holiday season."

This recurring annual debt pattern or "holiday hangover" can be avoided if small amounts of money are saved throughout the year in a special holiday gift fund. Using credit cards usually leads to impulse spending, overspending and increased debt, especially around the holidays.

Here are some tips to help you manage your finances during the holidays:

Set spending limits and look at your monthly budget and how much you can realistically set aside towards holiday gifts.

Make a list of all your friends and family members that you would like to buy gifts for and set a spending budget on each of them. It is also a good idea to make a list of each small gift, log the amount of money you expect to spend on cards, postage, holiday parties, decorations and holiday entertainment.

Make a spending limit for each gift recipient and then add everything up and get the total amount. It is important to make sure it does not exceed your overall spending limit and be prepared for any unexpected items or price fluctuations.

Find where to shop in order to find bargains. If time permits, comparison shopping can be beneficial and save you money. Remember that prices fluctuate from month to month.

While out at the mall or at the store, try to budget and compare prices. Avoid "Buying now and paying later." Think about next year right now and use your creativity and computer to create customized and personalized gifts such as calendars, planners and more. Most importantly, guard your credit and debit cards and never leave bags or important items unattended.

Following these tips can help you avoid the holiday spending blues and can help you with your holiday debt.