The holidays are a time to be merry... but unfortunately too much festive spirit can leave you with a debt hangover. It is easy to fall prey to the barrage of advertising and the competitive "Keeping up with the Jones" mentality when it comes to Christmas spending. Remember that the holiday season should be a time to focus on spending time with your friends and family, rather than running from store to store and worrying about the mountain of debt you are accumulating on your credit cards.

About one in five consumers will be coping with their Christmas debt well into the new year. Many forget that winter brings other expenses, like substantial gas and electricity bills. These start to arrive in New Year, just when you’re faced with the credit cards bills from your holiday shopping.

If you are a single parent, unemployed, or a senior citizen you may qualify for tax credits or heating assistance grants that can lighten your financial burden in the winter months. Any chance to lower your expenses during this time of the year is worth exploring. Budgeting for these expenses ahead of time is crucial to avoid debt and late payments that can negatively affect your credit score.

By avoiding overspending during the holiday season, you can eliminate the high balances on your credit cards that have haunted you in the past. Here are my top tips for keeping your holiday spending under control:

Open a Christmas club savings account with your bank or a local credit union. This is a short-term savings account that you open in January which usually requires no minimum deposit. Make deposits throughout the year whenever you have a little spare cash then withdraw your money on November 1st . With planning, this account can be a powerful weapon against accumulating debt on your credit cards.

Create a shopping list and stick to it. Impulse spending is the fastest way to become overwhelmed with debt.

Start your shopping as early as possible. Keep your eye out for sales and good deals in the months leading up to Christmas. If you spread your expenditures for gifts over a few months, you won’t end up putting everything on the credit card in December.

Don’t overlook flea markets and resale shops as places to find unique but inexpensive gifts. Dollar stores are also a great place to save on wrapping paper, ribbon, bows, and decorations. You might also find good stocking stuffers for the kids such as puzzles, coloring books, and crayons.

Plan your holiday menu in advance to avoid throwing your money in the trash as wasted food.

Package homemade baked goods in decorative tins to give as gifts. Buy ingredients well in advance when they are on sale at the grocery store. Nuts, spices, and chocolate are usually the most expensive components in a recipe so be extra vigilant in watching for deals on these items. Most dry ingredients used in baking can be stored for months and even butter can stored in the freezer.

Be extra careful when using credit and cash advances. In the weeks leading up to Christmas consumers are flooded with credit card offers. Pay close attention to the fine print as interest rates and repayment terms can vary enormously from card to card. Store credit cards are usually your worse option as they often higher interest rates than ordinary credit cards. Interest-free balance transfers can be helpful as long as you will be able to pay off your balances during the grace period. Cash advances on credit cards are probably the most expensive form of borrowing as many credit card companies charge outrageous fees for these withdrawals.

In conclusion, control your spending and budget for purchases in advance. If you must put your purchases on a credit card, educate yourself on the best card to use beforehand.