Evaluate how much money to spend -- Come up with a figure for holiday spending that you can comfortably afford, either by saving the cash before the holidays or paying off the debt within three months afterward. Taking a look at previous holiday bills may be just enough of a reminder to help motivate you to prepare a plan and avoid overspending.

Start saving now -- If you have not already done so, establish a holiday fund. The more money you set aside before you begin purchasing, the fewer items you will need to buy on credit. Even a few dollars set aside each week will add up between now and December. Any unexpected income can also be placed in this fund.

Prepare a spending plan -- Put holiday related expenditures into categories such as gifts, clothing, charitable donations, decorations, food, etc. Then decide how much you will spend for each of the categories. If your total exceeds the amount you plan to spend, prioritize your expenditures and reduce where you can.

Start thinking of appropriate gifts -- Putting some forethought into your gift giving can eliminate much of the overspending that often accompanies a last-minute rush. Make a list of individuals to whom you want to give a gift. When you have an idea about what to buy them, write it down, including the approximate cost of the gift.

Stay within your spending limits -- Set spending limits for each person on your list. Carry your gift list with you so you can keep track of purchases. You can avoid unmanageable bills by not exceeding these limits. When you have finished shopping, STOP.

Beware of "buy now, pay later" offers -- Sure, it sounds appealing, but if you can't afford an item in December, will you really be able to in March?

Think twice before you buy -- Before buying a gift, ask yourself if the gift will be appropriate for the recipient and within your price range. If not, don't buy the gift, particularly if you will have to charge the purchase. Watch the extra impulse gifts; the prices can quickly add up. Plan to pay your credit card purchases off within 90 days. A $20 sweater purchased on credit could end up costing you $30.

Put off some gift giving until after the holidays -- You may agree in advance with family and friends to exchange gifts after the holidays. This way you can take advantage of the after-Christmas sales and you can shop in a more leisurely manner.