Question: With the holidays fast approaching, do you have any suggestions for staying debt-free through the holiday season?

Answer: The day after Thanksgiving is the most anticipated shopping day of the year -- the beginning of the holiday shopping season. It's also a time when poor financial planning can lead to overspending and deep (or deeper) debt. Now is the time to compare your income and savings to your credit card debt, living expenses and other financial obligations. This assessment should help you determine the number of gifts you can afford to give and the total you can afford to spend.

The following information can help you avoid overspending and maintain good financial health during the upcoming holiday season.

Develop your holiday budget: Create a holiday budget and set limits on the amounts that you plan to spend. Be sure to include all of the holiday expenses and don't forget about decorations, cards, postage, gift wrap and food costs.

Make a list: Follow Santa's example. Make a list of all the people you need or want to buy gifts for, including small gifts for baby sitters, teachers, newspaper deliverers, etc. These small gifts can add up.

Consider creative gift-giving: When it comes to gifts, some people still believe it's the thought that counts. Consider gifts that have a personal touch, such as hand-made gifts. Consider giving your services. For example, you can make a "gift certificate" for grass cutting, baking, house cleaning, car washing, meal preparation, etc.

Avoid last minute shopping: Shopping under stress can lead to more spending. Plan your shopping trips in advance and shop as early as possible. Believe it or not, there are people who are already done with all of their shopping! Running around on your lunch hour or with young children is exhausting and not very productive. Arrange for a day or half-day off to do your shopping. Read the newspapers and sale fliers for sales and specials on the day you are going to shop.

Pay with cash when possible and spend wisely: Stick to your spending limit! If possible, leave your credit cards at home to avoid temptations for unplanned and unnecessary purchases. Take a predetermined amount of money with you to keep from overspending. If using credit is a must, limit purchases to the credit card with the lowest interest rate, and don't use more credit than you can afford to pay off in 90 days or less. Rubber band a piece of paper around your credit card and write down the amount of each purchase. This will keep you aware of how much you have already spent.

Track your expenses: Tally your receipts from all holiday expenses, including gifts, postage, meals, entertainment and decorations. Don't spend more money than you've set aside. Once you've completed your shopping list, stop shopping.

If you've kept to your budget, you'll start 2010 with less debt stress. And don't stop your financial planning after the holidays. Start setting aside money in January and make the commitment to do so every month so you are more prepared for next year's holiday season.

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