Open up a Christmas club on January 2nd. You can contribute five or ten dollars a week to the club and by October you will either have $200 or $400 to spend on Christmas gifts.

Avoid using your credit card to buy gifts. This only adds to your ongoing debt and will just leave you stressed out after the holidays. Pay with cash whenever possible. If you have to buy an item with a credit card, pay the bill off as soon as you receive it.

A Christmas budget would be a great idea to decrease the likelihood that you will overspend on gifts. Make a list of the friends and family members you intend to give a gift to and assign a dollar amount. It is important to stick to the budget.

Begin Christmas shopping earlier in the year. There are always sales every week so take advantage of them. You can even buy two or more of the same item in case you have to give a gift you weren't planning on.

If you like to shop online, use one credit card. There are many online coupon sites that offer great savings throughout the year. Utilize the coupons, check out the sales, and make your purchases. Remember to pay the credit card bill balance as soon as possible.

Perhaps Jane and little Joey want something very expensive this Christmas. If you can't afford it, don't buy it. With the list of gifts they will present to you, there is sure to be some items you can afford.

As "bah humbug" as it may sound, consider asking friends if they would mind not doing presents this year? You will be surprised that a lot of people would love to suggest it themselves, but worry they may be deemed a penny pincher. After all why buy something they probably do not need or want!

Holiday debt may be avoidable if you start with a Christmas budget, put aside a few dollars every day, or open a Christmas club. Instead of buying a cup of coffee everyday, put that money towards Christmas.

Let's be honest, buying items with credit card is very easy to do these days, especially with internet shopping. But if you shop early, you can certainly pay off the debt before the holidays and start the New Year with a bang instead of a whimper.