Create a Gift Budget

Decide how much to spend on gifts. As part of the consumer debt settlement planning process you should know your personal cash flow and how much money you can afford. Once you select an amount, don't be tempted to increase it.

List the people you plan to buy gifts for. Then go through it and cross people off. This is a time for generosity, but generosity within your means. While you will want to buy a gift for your spouse or best friend, you might want to skip a neighbor you seldom talk to or the second cousin you haven't seen in five years.

Decide how much to spend on each person. Remember the total must fit within your holiday budget. As before, the amount you choose should be set in stone. It's too easy to nudge up the amounts and suddenly find yourself spending twice what you had intended.

Shopping Strategies

Now that you have your gift budget, take out that much cash before you go shopping. Leave your ATM card at home. You probably aren't using your credit card if you are on a consumer debt settlement program, but if you are leave those at home too.

Shop when you are fresh and rested. Don't push yourself too hard. If you get tired, take a break or end the day's session. Shopping smart takes energy.

Look for bargains. Many stores have sales this time of year so plan your shopping around those events. If you see an item not on sale, ask the store manager if the price is likely to be coming down in the near future. Don't be afraid to negotiate, especially if it's a store you shop in regularly.

Give Things Other Than Money

We get so caught up in the shopping frenzy that we forget the point of giving. For many people, your time is more valuable that any gift you could give. An elderly friend might not need another dust collector for her mantelpiece, but would appreciate a few hours of yard work. Parents would love a night of free babysitting so they can go out.

Do you have any crafting abilities? Homemade presents can cost nearly nothing but the personal attention is worth more than the most expensive present.

Your friends are probably struggling financially just like you are. Even if they are not involved in consumer debt settlement, they still might appreciate saving money as well. Make an agreement not to buy each other gifts this year. If you spend time together and support each other through these hard times -- that is a gift you can't put a price on.