Have Yourself a Merry Debt-Free Christmas
Most consumers say they're planning to cut back on their Christmas spending this year, according to an October poll conducted by Consumer Reports. That's a good idea, given that the same poll found that more than 13 million Americans are still paying off credit-card debt from last year's holiday season.
But I have an even better idea: Why not help reclaim the true spirit and meaning of Christmas by declaring that, as for you and your house, the 2009 holiday season will be debt-free?
Here are 10 simple ideas that can enable you to make this Christmas a no-debt Christmas.
1. Take a stand. Hold a family meeting and declare that you are not going to fund gift-giving (or other Christmas-related expenses) with debt. Resolve that: (1) you will not spend more than a predetermined amount, (2) you won't allow advertising hype and "guilt buying" to control your family, and (3) you will pray and work as a team to meet your goal.
2. Allocate money. If you didn't include Christmas spending in your overall budget this year (yikes!), you'll have to make adjustments. Your options are to reduce allocations to other budgeted items or to dip into any surpluses set aside for major purchases or a vacation (you'll simply have to delay those things until you can replenish the funds).
Help your children allocate their money too, so that they have a clear budget for gift buying. (This is an opportunity to teach your children to manage money!)
3. Make a list. Before you start shopping, list the people to whom you will be sending gifts or cards. Also list items related to Christmas: decorations, wrapping paper, parties, food and activities. Then, list the estimated cost for each gift and item.
If your total cost exceeds the amount you budgeted, review your list and change the items (or delete a few) until your resources and costs match. (Strategy: When possible, use gifts to keep the focus on Jesus.)
4. Shop alone. If you take a friend with you, you'll spend more money. If you take a child or a spouse, you'll spend even more! So go alone if possible, stick to your list, and come home. The longer you are in a store, the more impulse buying you're likely to do.
5. Eat before you leave. When you go shopping, eat before you leave home. Eating at the mall or at a restaurant is expensive. (If you do shop with someone else, agree ahead of time that you won't be eating out.)
6. Draw names or exchange "family" gifts. If you have hordes of people in your extended family, have the adults draw names. This allows you to focus your attention on one person and buy (or create) something meaningful. In addition, you can work with your family to set price limits.
A related idea: Instead of buying for individuals, exchange "family gifts" — such as family games, DVDs, magazine subscriptions that match a family's interest (i.e., skiing, camping, traveling), personalized stationery, photo albums, and Christmas decorations.
7. Go out of your way. Not everything has to be purchased at malls and mega-stores. The best gifts often can be found in the unlikely places: hardware and garden stores; auto-supply shops; secondhand stores and garage sales; coffee shops; sporting goods stores; used-book shops; arts-and-crafts and fabric stores; athletic clubs, and pet stores. Example: a car survival kit for someone who travels often — with flares, a thermal blanket, jumper cables, a "help needed" sign.
8. Online shopping. One of the best ways to reduce seasonal costs (and hassles) is to shop online. You usually can get the same products as at retail stores, often at lower prices — and in many cases with free shipping to boot.
Online shopping eliminates fuel costs, impulse buying (the single biggest threat to your Christmas budget), and the possible expense of eating at a restaurant. (And, depending on where you live, you might avoid sales tax too.)
9. Be creative. If you don't have enough money to do what you had originally planned, get creative. Use your skills and the resources around you. Gifts of service are a great way to save money. Make clever coupons entitling the recipient to free babysitting, snow shoveling, weeding a garden, house cleaning, back rubs, etc. Talented amateurs might offer to cater a romantic dinner for two, install a shelf, or give a golf or music lesson.
Also, time is a wonderful gift. Offer to take an elderly relative shopping or a child to a day-long activity. A long-distance relative might appreciate a video or audio recording of their loved ones more than a flannel shirt or a case of cheese that might cost two or three times as much.
10. The most awesome Gift. The real story of Christmas is the birth of the Lord Jesus Christ, who graciously paid our "sin debt" and provides forgiveness and life to all who believe in Him. This year, make it a point to share this most awesome, meaningful gift — the Gospel and love of Jesus — with someone else. It's absolutely free! 
- Holiday poll: Shoppers are tightening belts | Consumer Reports
- Got a question or comment about this article? Discuss it on our Message Boards.
