10 last-minute tips for a debt-free holiday - FOX 54 WZDX – Huntsville News, Weather and Sports

By Andrew Housser

The holidays are almost here. You know who's been naughty or nice. You have your list and you've checked it twice. But if you are doing your holiday shopping using credit cards, you might be going too far into debt.

What is "too much"? Debt that takes longer than a month to repay means you are overspending. It is a frequent occurrence, according to a recent survey by Consumer Reports. The survey found that last year, in November, 13.6 million Americans were still paying off the previous year's holiday debt. Worse still, that debt was higher than most consumers intended. Before the holidays, shoppers planned to spend about $700. But in reality they spent more than $800 -- and shoppers who put purchases on plastic spent nearly $900.

Try these suggestions to minimize the financial impact of the holidays:

1) Budget, budget, budget.

Decide how much you can spend. If you can add a small "buffer," do so, as this will compensate for shoppers' consistent tendency to overspend during the holidays.

2) Use a list.

Start with a list of everyone to whom you will be giving and what you would like to give them. Tally the approximate cost. Remember to include gifts for teachers and party gift exchanges, holiday tips, and the cost of shipping gifts and entertaining. Also consider whether you intend to buy items for yourself this season. Can you afford everything on your list? If not, scale back before you begin to shop.

3) Don't overbuy.

Once your shopping list is complete, keep a copy in your purse or wallet. When you see the right gift at the right price, check it off and stop shopping for that person. At home, designate a closet, empty chest of drawers or laundry basket as a holiday gift repository. Tape the list to the top. Check off recipients whose gifts are complete. 

4) Re-evaluate mid-shopping season.

If you have already overspent, remember that you can change your mind. Before the first gift-giving occasion rolls around, do not be afraid to return the excess and choose more budget-savvy gifts instead.

5) Don't sign up for a store card.

The savings offered by a store-brand charge card might sound good. But usually these cards come with unfashionably high interest rates. If you do not repay the balance in full, the interest charges could equal or outweigh the savings at the cash register. Instead, pay cash, use a debit card, use a regular credit care if you can repay it in full on the due date, or even consider layaway, which several stores offer this season. Just be sure to understand the details of the plan before signing on.

6) Shop online.

Online shopping allows you to compare prices, avoid pressure, and search for promotion codes or visit reliable deal sites. As a bonus, online shopping can help you resist tempting in-store displays. Be wary of websites that pressure you to impulse buy with time- or quantity-limited sales.

7) Watch for free shipping promotions.

If you do shop online, shipping can really add up. Watch for free shipping codes or promotions. Or visit www.freeshippingday.com, where a plethora of online retailers will offer free shipping on Dec. 16.

8) Mass-produce gifts.

Acknowledge those who help you, while keeping it simple (and affordable). Decide on a plan -- perhaps two kinds of delicious cookies -- and spend an afternoon in the kitchen. Package cookies in attractive containers (ideally something that can have a useful second life, such as a large travel coffee mug) and hand them out to the mailman, dog walker, trash collector, etc.

9) Stay home.

Relaxing at home can save significant money. Spend some pre-holiday time sprucing up living spaces to create a comfortable, enjoyable place for fun and relaxation. Then borrow movies from the library, read holiday favorite books together, rent the kids some new video games, or invest in a deck of cards and a game-rule book for some quality family time. If you cannot travel to be with loved ones, relax with a glass of eggnog while you chat on the phone or over a webcam.

10) Eat in.

For the next few weeks, direct your discretionary budget toward holiday festivities instead of daily treats. As a bonus, most at-home meals are healthier than eating out, so you might avoid gaining the traditional holiday pounds.

Often, as people pare down the holidays, they gain more than just a healthier financial bottom line. They also find that their holiday celebrations are less stressful and more personal. Best of all, when you spend less, you can celebrate in peace, without dreading the credit card bills arriving later on.