You can find many tips and ideas about saving money during the holidays and avoiding debt problems come January. But are you paying attention?

What are the experts estimating we’ll spend this year? According to shopper surveys the average spending plan has dropped from last year to $859 per consumer this holiday season. Of that 58 percent will be spent on family, 10 percent on friends, 6 percent on service providers, 3 percent on co-workers, and how could we resist, 13 percent on ourselves.

First and foremost in saving money during the holidays, understand what you believe and the way you think about money:

1. Know the difference between wants and needs
2. Money does NOT equal love
3. Real meaning of success – financial fitness
4. Increase your awareness, know how you spend your money - recognize your Budget Black Holes

Other Ideas?

To Do:

Priorities – What is your purpose or goal? Is the holiday about family and friends or giving gifts? Make a priority list for what must be accomplished, and what is optional.

Budget – total holiday budget and gifts (don’t forget food, donations, travel, entertainment, holiday cards, postage, gift wrap, and decorations. Consider if you really need new party clothes or if home made gifts could take the edge off your holiday budget - like baking goodies)

Comparison shop - make non-spending comparison trips, or use the Internet or circular ads to compare prices.

Shop all at once at purchase time - use your budgeted list and stick to it (if your list is too big to do all at once- see ‘avoid overdoing it’ below - break it into chunks or groupings to be completed at once). Experts say 50 percent of Americans will exceed their holiday budget by 22 percent - which side will you fall on?

To Avoid:

Last minute shopping – results in pressured decisions and increases the likelihood of over-spending

Over doing it – avoid shopping when stores are most crowded, shop without your kids but go with another adult if necessary, one who is as serious as you about sticking to the list, to help keep you on track. Remember, if you’re cranky and tired your choices will reflect that – take a break or rest as often as needed.

Above all avoid using credit – there will be consequences. For example, if you’re in a DMP it could mean creditors drop you from the program and eliminate your benefits.

Never be afraid to explore your creativity during the holidays. Some families give gifts on New Years or later to take advantage of better retail prices and to keep the holiday focus off of the gifts themselves.

Exploring your creative ideas for the holidays may also call for a reality check. Are the things you are doing truly meaningful traditions or simply just the way you’ve always done it? Are there alternatives that could lower the costs without losing the fun and memories created?

Regardless, you can have a holiday filled with the best of the season and still avoid big holiday debt.

This article first appeared in The Defeat Debt in 2006 but given the current difficulties for some consumers with the housing market and mortgages we thought this would be a good time to review the topic once again.

Warning - If you or someone you know has fallen behind on mortgage payments and are now possibly facing foreclosure, don’t make the situation worse by falling for the latest mortgage fraud scam. Known as “foreclosure rescue” scams these individuals and companies prey on homeowners having difficulty with their mortgages by misleading borrowers into transferring title to the home for a period of one to two years to the organization as a way of avoiding further foreclosure proceedings. The owners are then set up to pay rent to the scammers so they can stay in their homes, under the guise that the owners would eventually ‘buy back’ the house down the road once their financial difficulties are resolved.

Unfortunately, in many cases, the companies, without the knowledge of the borrowers, have sold the homes to a third party leaving the borrowers in the lurch and often facing eviction.

While it has been around for a long time, mortgage fraud has more than doubled in the last year according to The Federal Bureau of Investigation, with the goal of scammers to get their hands on the available equity growth from the housing value appreciation of the last few years.

Ten states across the US have passed legislation in an effort to deter mortgage and foreclosure fraud, yet the majority of duped borrowers who find themselves entangled in such scams have great difficulty recouping any of their losses.

If you find yourself delinquent on your mortgage there are certain avenues of assistance you can pursue before you become a target for scammers.

First, talk to your lender. They are in the best position to be able to work with you to resolve a temporary problem or resolve a greater issue like a rising interest rate.

Second, seek out a HUD approved Housing Counseling organization, like Credit Advisors Foundation. The Counseling agency will review your current financial situation and can offer you a variety of options to assist you. The agency may also be able to set up arrangements with your lender to help you get back on track.

Most of all, don’t delay.

The situation will not go away, nor will it resolve itself on its own. You can get the help you need, avoid scammers and bigger problems if you take action quickly.

The Word Search Challenge - the words listed below, pulled from the articles in this edition of Defeat Debt, are hidden in our puzzle. Test your skill and find all seventeen words. Good Luck!

Budget Credit Egg Fraud Ginger Holiday Home Housing Money Mortgage Need Pay Priority Rescue Season Shop Want