Suggestion One: Don’t buy presents!

 How could you possibly not buy presents for your loved ones and not feel like the Grinch? Its easy! Chances are, you are all strapped for cash this year. So instead of spending upwards of $20 each for your parents, in-laws, siblings, spouses, kids, cousins, etc., why not just do a Secret Santa type of deal? Have everyone put their name in a hat, and pick out who they will be buying a present for. And if there are children under 12, go ahead and have everyone buy them something small too. As for couples, if you want to exchange presents with your sweetie, go right ahead. That way, you will keep your spending down.

Suggestion Two: Cut down on your list.

Have a friend that never buys you a present? What makes you think that in this economy, they will? And yes, its okay if you don’t buy a present for your aunt’s grandmother’s cousin’s niece.

The holidays don't have to mean "expensive".

Suggestion Three: For all those you have to buy presents for…

Have to buy a present for your boss, your neighbor, Santa himself? Try to make one of those gift baskets you would pay for anyway. Making little things like chocolates, cards, soaps, etc. is easy! Just buy a basket for each person, a few ribbons and some tissue paper, and look for instructions online on how to make little gifts (or just make your famous cookies), and make a few baskets. You can also buy large packs of things like candles, teas and coffees, etc. and throw them in. Always a great gift idea.

Suggestion Four: Instead of a gift for one,

Give a gift for all! You can do this in two ways– give gifts to groups, such as couples or families, or instead of exchanging gifts to each other, give a gift to the world! As a family, go help out a food kitchen, or donate to the Salvation Army. That way, you will still share in the message of the season, but keep it less materialistic.

Suggestion Five: How to pay for the rest:

Still not convinced? Fair enough. Set a budget–even if it means talking to your family and planning ahead of time that you will spend no more than ten or twenty dollars on each person. And make sure you have enough money saved up for at least the minimum payments– starting off the new year with old debts is never a great idea. And then decide: do you really need those red shoes to match the Santa outfit, or can you wear your black ones? Do you need fifty new ornaments, or can you use your old ones? Do you really need the tree that is a foot taller and will barely fit in your living room?

And once it is all done, enjoy it. That is what the point of the holidays is, isn’t it?

• Cut down on the number of credit cards you have. You should have no more than two or three good, low interest cards. However, avoid closing or opening too many credit cards at once, as this will lower your credit score.
• Use your credit cards. Keep older cards open, even if they have high interest, and just use them to buy something small, like a candy bar, once a month. Don’t use them for large purchases or often, but just keep them because the longer you have an account in good standing, the more stable it will be. The three bigs (of credit scoring) like stability.

Does Your Wallet Look Like This?

• Avoid store credit cards (such as department store cards, coffee shop cards). These come with an insanely high interest that rarely is made up for by the perks. At most, have only one of these, to the coffee shop you visit once a week, for example. However, make sure that you will pay off the balance before it accures interest every time. If you know that you are not one to pay off balances in full, ask yourself whether the dime you save on coffee is worth the quarter you will pay in interest for each cup.
• Never ask a company to lower your credit limit. If you have balances that are far too high on your credit cards, its time to change your habits, not your credit limit. Using more than 30% of your credit limit will harm your credit score more so than a late payment will. If your credit limit is $1,000, then 30% is only $300. If you exceed this amount, then your credit score will suffer. However, if your limit is $10,000, then 30% grows to a whooping $3,000. That amount is far harder to exceed. And in order to improve your credit score, just keep your balances under 10% of your credit limit.
• Pay all your cards off on time, don’t use cash advances, and try to pay at least 10% of the balance off each month. This way, you will avoid fees and penalties that can raise your interest and payments while lowering your credit score.