Avoiding holiday debt blues.

• Position: Shopping - Brief Article

With a slumping economy and a nation consumed with fears of terrorism, economists expect Americans to spend less this coming holiday season, but that doesn't mean some shoppers won't lay out more on gifts than they planned. Excess holiday spending is sometimes what finally pushes a financially troubled family into bankruptcy. Here are some tips from the Financial Planning Association, Denver, Colo., on how to keep your holiday debt-free:

Make a gift list and check it twice. Don't spend so much that you regret it in January when the bills come in. Determine how much you can afford to spend overall and divide that amount among the people for whom you want to buy presents. You can assemble the list by browsing through catalogues and store windows for ideas and prices --just don't buy anything yet.

Stick to the list and avoid impulse buying, You probably are familiar with the advice never to go grocery shopping without a list (or when you're hungry). The same advice applies to holiday shopping. Sticking to a list reduces expensive impulse shopping, which is typically what gets people into financial trouble.

Track what you spend. Inevitably, you'll buy some things on impulse. At least mark down on your list what you've spent so that you can keep the overall outlay within limits. Like any budget, if you overspend in one area, try to under-spend in another.

Shop early and take your time. Starting early allows you the opportunity to shop for bargains and take advantage of sales. People who do most of their shopping at the last minute don't have time to hunt for bargains and are more apt to ignore their budget and spend any amount out of desperation. If you shop on the Internet, check out the possibilities, but sleep on it before actually ordering gifts.

Take cash and leave the credit cards home. Credit card companies push cards hard around the holiday season, with low introductory rates and other incentives. However, many planners feel that credit cards often lead to excess holiday spending (as well as the rest of the year). In addition, you run the risk that your financial world may take a turn for the...