RedGage

Each year, as the holidays roll around, many families begin to cringe at the thought of Christmas shopping and the debt that usually goes with it. In fact, an analysis by Creditdonkey.com, a credit card comparison site, states that it may take as long as four years for some Americans to pay off last year's Christmas debt. The season of giving does not have to be a financial strain. Learn ways to creatively shop and stay debt free.

Become a Bargain Hunter

Holiday shopping should not be restricted to the weeks between Thanksgiving and Christmas. Savvy shoppers look for great deals throughout the year. See a garage sale? Stop and look. One man's trash is another man's treasure. This is a great way to find gently used toys, stylish clothing, quality furniture, books, art and music. Also, don't discount the value of re-sale or thrift shops. Michelle and Jim Bob Duggar, from the TLC reality TV show, 19 Kids and Counting, have a motto that has become quite popular, " Buy used and save the difference." Many times, consumers can find brand new clothing, picture frames, household goods and more, with the tags still on them, shopping for bargains at these second hand options.

Make a List

Staying organized and on budget is the key to debt free living. Carefully plan and make a list of every gift that needs to be bought and earmark a budget for each item. Then enjoy the hunt. Make a game out of finding that perfect gift for each person on or below budget.

Cash Only

Credit has been around for more than a hundred years. During the pioneer movements of the 1800's, those traveling west to homestead and start new communities often opened a line of credit with the General Mercantile to obtain necessary supplies. This line of credit was usually paid off with interest at harvest time. Now days though, consumers have seem to forgotten that debt comes with interest. Many of the older generations, who built savings, bought stocks, CDs and bonds, did so with a theology of, " If you don't have it, you don't need it." Opening a credit account was frowned upon. Hard work, smart saving and living within your means was the wise way to go. That hasn't changed. Shop for gifts that remain within budget and pay with cash whenever possible.

Budget Conscious Gift Giving Options

In these tough financial times, many consumers are looking for creative gift giving ideas. Remember, " It's the thought that counts." It may not be be financially possible to buy a gift for every relative, friend, co-worker, neighbor, etc. Many individuals are now opting to buy gifts for immediate family only. That's why making a list and creating a Christmas budget is so important. Beyond the realms of the inner circle of kids, spouses and significant others, make or buy inexpensive little tokens of love and appreciation. A few ideas might include: home-made treats, candles, Christmas ornaments or coffee mugs full of holiday candy.

Taking Financial Freedom Into the New Year

Take these simple tips and tricks to saving money at Christmas and apply them to shopping, budgeting, getting out of debt and staying debt free in the year and years to come. First of all, avoid using credit cards. Pay cash. Make a list. Stick to it and stay on budget. Always shop around. Look for the best deals. Don't overlook second hand, re-sell, consignment and thrift stores. Avoid buying anything brand new and at retail. It's just not worth it. Make a game out of bargain hunting. This doesn't just apply to consumer goods and gifts. It can also be applied to cars, houses, services and entertainment. Never pay full price for anything. Buy only what is needed and only what is within your means. Be creative a resourceful at Christmas time and all through the year. Take on the challenge.