Tips for Cost-Conscious Holiday Spending

N E W   Y O R K, Dec. 14 -- As the old saying goes, it is better to give than to get, but if you are going to do the giving this holiday season, save yourself potential headaches and spend wisely. You may even get something in return.

According to a recent ABCNEWS.com survey, the average American plans on spending approximately $775 on holiday gifts this season, down slightly from an inflation-adjusted $826 last year, and down further still from 1999, when shoppers came home with $930 worth of holiday loot.

Being sensible, organizing your thoughts, and streamlining your shopping process are the best ways to keep from spending frivolously and doing damage to your bank account, or your credit card balances.

Good Debt vs. Bad Debt

While it's never a good idea to go into debt to finance holiday gifts, if you have to, make sure to understand the different types of debt to ensure controlled spending.

For starters, be aware that credit cards, especially those from department stores and specialty retailers, can have annual percentage rates (APRs) as high as 24 percent.

Major credit cards may have lower rates, but these, too, are still significant. The interest rates can go up if you send in your payments later, or if you are not able to pay the minimum amount.

Home equity loans, which have rates that are lower than credit cards, can be a better way to finance purchases if you stay disciplined and are confident you can pay the principle and interest off in the given amount of time.

Here are some ways to save money while you shop:

1. Know your budget: Tell yourself that once you set this number it is non-negotiable. Remind yourself that $10 allocated for a person's gift means $10, not $12, unless you are willing to offset the added expense with a lower-priced item for someone else. After every purchase, track the exact amount that you spent and keep a running log.

2. Make a list: Keep a detailed list of who you want to buy things for, how much you want to spend, and what you would like to give. Be as specific as you can — it will keep you focused.