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Watch Your Holiday Spending

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(NewsUSA) - Impressing the in-laws might not come cheap, but holiday giving puts too many Americans deep into debt. Gift-buying, on top of steep heating and energy bills, can quickly pressure tight budgets, leading to financial trouble in January.

The key to overcoming holiday debt? Avoiding it. Americans should start saving holiday money before they so much as pull out their winter wear. But even families who fail to plan ahead can still set holiday budgets.

Holiday shoppers should make a list of possible expenses, ranging from obvious costs, like that digital camera for a brother, to more subtle expenses like extra gas for shopping trips, wrapping paper and holiday cocktails after work. Families should eliminate any unnecessary spending. A $3 latte a day can add up to $90 a month -; money that could help cover holiday expenses.

Store credit cards might look like great deals, but they typically carry high interest rates, so people who make late payments can see their debt balloon rapidly. Shoppers should treat credit cards like cash, not as a way to buy things they cannot afford. If they can't pay back the money within 30 days, they shouldn't spend it.

Shopping early and shopping online can help families save. Last-minute shopping trips give Americans less time to compare prices, use coupons and find sales. Shopping online can help families find lower prices. Shoppers should look for freebies, like free gift wrapping or shipping, which will help limit costs.

If families survive the holidays without breaking the bank, they should not abandon any money-saving habits. Instead, Americans should make saving for retirement one of their New Year's resolutions.

Some financial services allow users to save small amounts of cash at a time. But over time, small savings can become healthy nest eggs. One service, Save 252 (http://www.save252.com), helps users put away as little as a dollar a day toward retirement. The service automatically transfers a set amount of money, which the user determines, from a regular checking account into a savings account or IRA.