Get ahead by budgeting holiday spending Published Nov. 17, 2010 By Charley Ringwood Airmen & Family Readiness Center SHEPPARD AIR FORCE BASE, Texas -- Every year, we either face the holidays with a plan in hand or with our head down just hoping to get through it. As Thanksgiving approaches and excitement builds for annual "Black Friday" shopping sales, trying to stay out of debt can be a real challenge. Avoiding the New Year's credit blues is the best plan. By taking some simple steps now, you can make the holiday season less stressful and have the holidays you deserve. Holiday spending plan tips - Decide first how much money you are willing to spend overall and then make an allocation by person. The key is to remember to set dollar limits on gifts. - Sit down and make a list of everyone you want to add to your gift list. - Stick to the list for it to work. Don't get carried away and start buying gifts for friends and relatives you haven't seen in years. If you find a great deal, don't rush to spend the money you saved. Be creative Think of new ways to celebrate by exchanging names instead of buying for the entire family or suggest a year with no gifts and spend quality time together. If you aren't convinced yet, let's talk money and what it really costs. If you charge $2,000 on your credit card this Christmas season with an 18 percent interest rate and you make minimum monthly payments of $50, it will take you 61 months to pay off . That's a little over five years to pay off this year's Christmas gifts, assuming you started out with a zero balance on that credit card. Economic surveys estimate the average American will spend $825 this Christmas. With the latest electronic toys, phones, laptops and Ipads that estimate may be low. If you try to please everyone, your budget plan may collapse and you will be paying on credit cards for years to come. Other pitfalls on the shopping landscape - Avoid bank overdraft fees. There can be a $35 overdraft fee every time you dip into overdraft protection. You can opt-out of bank overdraft by having your savings account linked to your checking account to protect you from overdraft fees. - Don't overestimate the power of your income tax refund check. You overextend during the holidays thinking you can pay it off but then create more debt with additional charges by taking advantage of other great deals that come along such as new furniture, big screen TV or rims for the car. - Compare gift cards before you purchase them. Some charge an up-front service fee to purchase and if not used in a timely manner, the company will charge a $3 - 5 monthly fee until the card expires. - Get in the habit of carrying cash for small purchases like fast food restaurants or holiday outings. By sliding a debit card, you can easily lose track of where your money is going. Budget cash and stick to what you have in your wallet. - Prepare for next Christmas by opening a savings account this January and deposit a monthly amount that is strictly for holiday spending. Using that and any store layaway plans will extend your budget and your holiday season. Remember to control your money before it controls you. If you come out of the holidays and spending got the better of you, the Airmen and Family Readiness Center offers individual budget counseling and the following classes in the next quarter. Classes are held at the A&FRC, Bldg. 962, at 11:30 a.m. Jan. 26 Thrift Saving Plan Feb. 21 Budget for Your Future Feb. 22 S.O.S (Stop Over Spending - Breaking the chains of debt) Feb. 23 Thrift Savings Plan Feb. 24 Savings and Investing For more information on money matters, visit the following websites: www.militarysaves.com www.militaryonesource.com www.annualcreditreport.com free credit once a year www.powerpay.org debt reduction program