By ANNEMARIE FRANCZYK

Recession or not, here they come.

You can't avoid the holidays, but you can avoid holiday overspending that can eat away at your household income well into the New Year. The effort will take some focus and discipline, such as sticking to a spending plan and walking away from anything that's not on it.

Budget, credit cards and loans

Start with a budget that reasonably sets the amount to be spent on each person, stresses David Jones, president of the Association of Independent Consumer Credit Counseling Agencies.

The average holiday-spending budget this year was expected to be $832.36, up just about 2 percent from last year, according to a National Retail Federation survey. But that was the best estimate before October's decline in the stock market.

Once budgets are in place, some advisers suggest a cash-only spending policy. But Jones says debit cards also are a good option: anything that keeps you from charging up credit cards, he says. You likely will be paying the balance off months later, and surprise expenses post-holiday could postpone payment and lengthen your debt, he says.

Same goes for store credit: Stay away. The initial come-on - sign up for a credit account and save 15 percent on that day's purchase - might be attractive. But you'll end up with a credit card to spend on throughout the year, he says. Items bought on credit end up costing more when finance charges apply.

Along the same lines, avoid holiday loans offered by some financial institutions. Jones calls them "the worst" and an all-too-easy way for consumers to accumulate debt.

In other words, it's OK to honor Christmas in your heart and try to keep it all the year, as Dickens wrote, but not the expense.

"It's not worth paying for Christmas through the whole year. People don't appreciate it that much," Jones says.

For next year, consider a holiday savings club, a low-interest account that allows you to put aside money every month throughout the year and access it only at the holiday season. Critics say disciplined savers can accomplish better results by putting cash into a higher-interest money market fund.

 

The old "making a list and checking it twice" bit continues to be sage advice for a holiday spending plan. The biggest component of that list, as always, will be wrapped up in gift giving, according to the retailers' group. And understandably, this year more than in recent history, price - not customer service or store location - will be the biggest factor in buying decisions this year, their survey says.

Many Americans get an early start - 40 percent begin holiday shopping before Halloween - to spread out spending over a period of time, according to the retailers' survey. Regardless of when you head out, Amherst financial adviser Rosanne Braxton suggests shopping the ads and saving receipts to get adjustments if the price changes after you purchased an item.

Don't forget the Internet. Online shoppers, Braxton says, usually are offered more discounts than at store-based sales, and sometimes get free shipping.

Avoid impulse spending, Jones cautions. It's a holiday budget nightmare.

"Have something in mind, go get it and leave. Don't shop around and fall victim to the kinds of things that happen in malls," he says.

That includes retail strategies, such as "buy two, get one half off" sales that ultimately trick the shoppers into buying more than intended.

Braxton and Jones suggest taking another look at the people on your list. Can you exchange names, Braxton asks, so you don't have as many gifts to buy? Consider making a gift, Jones says, because it's personal, more appreciated and less expensive than a store-bought gift.

When you're giving the list a second look, make sure it includes anything that is spent on or during the holidays. That includes expenses related to decorations, greeting cards and postage, flowers, candy and food.

"Plan ahead for your food," Braxton says. "Shop the ads, buy generic food items. They are cheaper than brand names, and most items are just as good as brand names."

There's money in holiday cards, too, Braxton says. But it's not what you're thinking.

"People could send postcards instead of cash and save on postage. It costs 27cents to send a postcard versus 42 cents for a card. That is a 15-cent savings. If you send 100 cards, that's a $15 savings," Braxton says. Then there are electronic cards, available for free in many cases.

Annemarie Franczyk is a freelance writer.