What are the things that come to mind when the Christmas season is near? Gifts, entertainment, travel—anything and everything that necessarily requires you to shell out not just a few bucks but even the entire contents of your bank account. But that’s when you’re lucky enough to have some money stashed away in the bank. For most people, it can mean overusing their credit cards leading to outrageous credit card balances even before the holiday is over.

You may think that talking about your credit score during Christmas when everybody should think of happy thoughts is out of sync. It is. However, it is better to be aware of how your credit rating is doing even before you have the chance to spend your entire life’s income for one season alone.

Christmas is the great time to travel as long as you do not go overboard when spending cash or worse---using your plastic. Despite the fact that majority of Americans are open to the idea of spending less during the holidays, a National Retail Federation survey shows that the average American individual projects to spend at least $817 for shopping, travel and other Christmas-related expenditures!

Americans have become so dependent on plastic that their total credit card balances amount to over $600 billion. This propensity to spend more and incurring holiday debts is evident with a 2003 survey conducted by the Consolidated Credit Counseling Services, Inc. which shows that at least 54% of those who have incurred Christmas debts during the previous Christmas were still paying off their credit card balances by November 2003.

If you don’t want to be included in those statistics then here are some budgeting tips to keep your holiday travel and entertainment expenses under control.

Plan Ahead
You worked so hard the past year so you deserve a break, probably during the Holiday season. While holiday travel is good for your self esteem and physical well-being, it is best to plan your trip ahead to get as much savings from airfare and hotel reservations. Airlines and hotels provide discounts for clients who book and even pay ahead of time. The amount you save can be used for other expenses during your trip.

Save for your holiday travel and entertainment expenses
Go ahead; go to your favorite destination during the holidays. Entertain your friends and family during Christmas. But make sure you are financially prepared for your travel and entertainment expenses as well. Saving at least $100 each month and putting the amount in your holiday travel and entertainment kitty will allow you to travel and hold parties during the Holidays without breaking your bank account or adding up to your credit card balances.

Try a potluck party
If you must entertain friends or family during Christmas, why not hold a potluck party where each guest bring his own dish to be shared with everyone? This way, the whole group shares in the entertainment expenses and you avoid overspending and incurring holiday debt.

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