"Things just look so attractive, and credit is so available," says Mary Hunt of Garden Grove, founder of the Cheapskate Monthly newsletter, now called Debt-Proof Living. "We want the kids to have everything, and we just go nuts."

Jim Frannea, chief executive of the Consumer Credit Counseling Service of Orange County, says stores play on our need over the holidays to be loved and feel good about ourselves by giving to others.

Make a list, and check it twice. Decide how much you can afford to pay, then decide what you will buy for each person - not the other way around. "There's more to it than gifts," says Deborah McNaughton of Placentia, who does credit counseling. "Holiday cards, baked goods, parties - all these things should be in the budget."

Track your expenses. Having a plan doesn't mean much if you aren't keeping track of what you spend. Don't wait until the bills come in. Keep all those receipts, and calculate a running total. Hunt recommends putting cash in an envelope with the name of each person. "When the envelope is empty, you know you're finished," she says.

Pay with cash or a debit card. This is money you know you have, so you don't have to worry about unwanted bills showing up next month. "Cash is still king," says Matt Coffin, founder of LowerMyBills.com. "People who use credit cards will spend up to 30 percent more on gifts than people who pay cash."

Use just one credit card. Using credit can be smart if you use it wisely. Start by using only one card, and plan to pay off the bill when it's due. It's easier to keep track of expenses when you use only one card. "Don't skip a payment or two even if credit card companies allow you to. You will pay more in interest charges in the end," Coffin says. Ditto on the checks some credit card companies offer - avoid them.

Pass up store credit cards. The offer is tempting because stores know that they probably will make back the one-day 10 percent or 15 percent promotional discount because odds are greater you will spend more overall. "Department stores also charge higher interest rates," McNaughton says. "They are betting you won't pay off your bill and their 21 percent or 22 percent interest rate will bring in a lot more than that 10 percent discount."

Find a 0 percent credit card balance transfer. If you know you won't be able to pay off your credit card, shop for a card that will let you transfer your balance for 0 percent interest. Pay it off as soon as you can without charging anything more to it. "It will help you lower your interest costs after the holidays," Coffin says.

Shop online. Consider Web sites such as www.mysimon.com, www.dealcatcher.com, www.fatwallet.com and www.dealmac.com. Besides helping you avoid the hassles at the malls, they let you compare prices, get coupons or other discounts, and possibly get a break on delivery fees. "These deals can add up to substantial savings," Frannea says.

Be creative. A gift of time or even something homemade may be appreciated more than something from a store that may end up in the back of a closet. Consider designing a gift certificate for baby-sitting or a home-cooked meal, a calendar of family photos or a collection of favorite family recipes. "It's good to keep in mind that on Jan. 25 people aren't going to remember what you gave them, only that you remembered them with a gift," Hunt says.

Trim your list. This may be the year when everyone in the family should draw names and give just one gift each to one family member. You can do the same with a group of friends or a secret Santa at the office. "It's a lot less money, and everyone gets great gifts," says TrueCredit, which oversees consumer credit reporting for TransUnion, the credit-reporting agency.

Send e-cards. You can save a lot of time and money on stationery and postage with e-cards, many of which have fun animation, music and interactive games. Check www.hallmark.com or www.123greetings.com, where many cards are free. "You can include a personalized message and won't have to worry about it getting there on time," says Steven B. Smith, author of "Money for Life."

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