How to avoid going into debt over Christmas

I’m writing this at the end of January, which might at first seem like a strange time to be writing about how to avoid going into debt over Christmas.

But actually, January is probably the BEST time to think about your holiday spending.

That’s because last year’s holiday season is still fresh in your memory, and there’s still so much time to plan how to handle next year more effectively.

And the key to that plan isn’t necessarily to cut back on that spending or to stick to a stricter budget for Christmas. You don’t have to learn to knit so that you can make everyone scarves and hats as gifts.

The secret to avoiding debt over Christmas is to be intentional about the money you spend during the holidays. And to create that intention early so that you can start setting money aside for it throughout the year.

Analyze last year’s spending

Before you can set a reasonable plan for next year’s holiday spending, it’s helpful to have information about how much you spent this past year. So dig out those bank or credit card statements, or look back at your budget if you keep one. Think about gifts, decorations, holiday events, food, holiday cards, and travel.