Stay out of debt this holiday season

... financial goals to keep priorities straight, Cook said. You cannot reach those goals if you are paying retail plus 18 percent interest on the credit-card balance.

"A gift is appreciated, but probably will not change the recipient's life. Saving enough to buy a home, however, may change yours.

"Stay true to your financial goals by making a holiday budget pronto. Frugal Dad blogger Jason White bases his budget on how much he can put aside each week for presents. "We are really only comfortable putting away $50 a month, so our budget is going to be $600," he said.

"Multiply what you can save by the number of weeks until the holidays and you have your budget. (Start now and you've got about 10 weeks until both Christmas and Hanukkah.) Deposit your weekly holiday savings into a high-yield money market account. Compare interest rates at Bankaholic.com.

"Divide your budget by the number of people on your shopping list. Got $250 to spend on 12 people? Spend about $21 per person to stay on track.

Spend early to save

"Embrace the Bargain Hunter mantra - buy ahead of need - to take advantage of low prices. Jot down what you want to buy each person and when you see a worthy, deeply discounted gift, snap it up. For all the recipient knows, the trendy silicon barbecue brush you found in the bargain bin cost $15 at Williams-Sonoma.

"Make a point of seeking out hard-to-find clearance racks before browsing full-priced aisles. For a list of 10 budget-friendly stores and gifts, visit blogs.dailynews.com/bargain.

"Donna Freedman, who co-authors the Smart Spending blog on MSN.com, likes to give passes for tasks that are coveted, like washing laundry or cleaning the litter box. She relies on thrifty gifts like homemade cookies, jam or a heartfelt letter.

"If you are worried that a friend or family member may be surprised to receive a homemade gift, ask them ahead of time if they are feeling the same financial stress you are.

"Chances are they want to be frugal this year, too. "It can be embarrassing to admit that you can't do things the way you used to," Freedman said. "But you can always look at it as creating a new tradition."

"Consider setting a price limit on gifts. Or choose a theme that prizes creativity over spending ability, like best gift from a dollar store or yard sale. Suggest giving gifts only to children. Or for family, draw names from a hat and buy a gift only for the person whose name you draw. If you usually host a large holiday dinner, make it a potluck or open house with cookies and cider.

Checks and balances

"Each time you make a purchase, subtract it from your budget. If Mom gets gemstone earrings, Dad has to settle for a magazine subscription. Avoid overspending - which is tempting when you start shopping early - by reporting gifts to a friend. Being accountable to someone else may help you forgo pricey gifts or a treat for yourself.

"When retailers put holiday cheer into high gear - piping in sentimental music and decorating every spare inch with red and green - resist splurging. Getting emotional can lead you to justify a purchase you cannot afford, Cook said.

"(Shoppers) are all looking for a reason why they can spend what they know they should not be spending," Cook said. "That's a big budget buster."