It's that time of year when people make a list and keep adding to it. We always make exceptions, especially for our holiday spending. It is only once a year, right? Unfortunately, for most of us, the spending is really not just once a year.

The credit card bills sometimes take over our mailboxes. Luckily, you still have time to plan and keep that spending from going out of control.

Follow these tips on effective ways to use credit cards and how to pay down debt.

Tips on Using Credit Cards

• Define your objectives. Put together a budget and decide how much money you will spend for the holidays. Stick to that budget!
• Be realistic. Don't set yourself up for failure. If you set your budget too low, you won't be able to stick to it. If you fail the first year, you may never be able to face a budget again.
• Reduce impulse buying. Many of us spend a lot on ourselves, especially during the holidays because we spend more time in stores and keep seeing such "good deals". Close your eyes and keep walking. It will probably be a better deal after the holidays.
• Add up what you have spent and keep track of it. This is where most of us have difficulty because if we know how much we have spent, it isn't as much fun.
• Take advantage of the competition. All credit card companies offer the ability to transfer balances, offer low rates, etc. If you are going to use credit, use it smart. Take advantage of the competition and transfer your balance to a card with a lower interest rate.
• If there is any way possible, try to pay off those credit card bills every month or at least every few months. Don't let that debt get so high that you can't figure out when you will be able to pay it off.

If you end up with more debt than you know what to do with, follow these Hints on Paying Down Debt, Especially After the Holidays

• Add extra dollars to the minimum monthly payment. Even if you only pay $5 extra, it will reduce the interest cost and help you get it paid off more quickly.
• Understand when it could be paid off. Get a picture of how many months it will take to pay down the debt and make that your longest term target. You will see the light at the end of the tunnel! Check out www.debtfree.org to help you calculate this.
• Avoid using a home equity loan to pay down your credit card debt. If you move your credit card debt to a home equity loan, you are taking your consumer loan and putting your home at risk. Just continue to pay it down in a systematic way, the same way you would pay off a car.
• Negotiate! There is tremendous competition among credit card companies. Offer to transfer balances to one credit card in exchange for a lower rate. If you have a large balance, you have negotiating power.
• Manage your spending. You can't continue to spend at the same rate and pay down your credit card debt at the same time. You have to make a concerted effort not to spend as much or you just end up spinning your wheels.

Plan before you spend, keep track of credit card charges, and look forward to a debt free future!