The holidays can often be a stressful time – especially when it comes to money and budgeting. Each year, the average American family spends anywhere from $750 to more than $1,200 on gifts alone. Additional costs for food, decorations, travel, cards and other miscellaneous supplies begin to add up, and many families find themselves in a large debt by the time the holidays are over. But proper planning, research and a little self-discipline, can help prevent post-holiday debt. Here are a few tips to get you started:

• Plan Ahead: A few months before the holidays, make a list of all the possible expenses you will have and calculate the totals. Anticipate money not only for gifts, but also entertainment, clothing for parties, travel, etc. It can be helpful to look back at how much you spent the previous year. If you are still paying off some of those items, it may be wise to cut them from the current year’s budget.
• Make a Gift List, Set Limits and Stick to it: Decide who you will be buying gifts for and the maximum amount you want to spend on each person. Keep track of what you spend, and once you’ve hit the maximum amount you’ve allotted to that person, do not go over.
• Do Your Research: Visit many different stores to do price comparisons. You can also get on the Internet to check prices. Often times you can find great online deals during the holidays.
• Buy in Bulk When Possible: Each year, there always seems to be a few unexpected gifts that are not figured into your original budget. You can plan ahead for these by buying a few things in bulk that anyone would enjoy (such as wine, candles, baked goods, etc).
• Use Credit Cards Wisely: Credit cards seem to be the major culprit in holiday debt. Here are a few tips to help you avoid getting into credit card debt:
• Pay Your Balance as Soon as Possible: Although many credit card companies offer a grace period over the holidays, it’s best to pay off your balance right away if you have the money. You might have good intentions to pay it off, but with all the post-holiday activities, you may forget about it and soon carry a balance.
• Find a Card with a Low Annual Percentage Rate (APR): Research credit card companies to find competitive rates. The average card rate is 13 percent, but some companies will offer you zero percent for a certain period of time.
• Watch Out for Store Credit Cards: Many department stores and other specialty stores offer a one-time discount for applying for its credit card. Be cautious when signing up because these cards often have interest rates of 20 percent and higher. If you tend to carry a balance, the interest rate often outweighs the original signing discount.

Sources SmartMoney.com; Third Age