1. Don't forget everyday bills

Christmas is not just about paying for the fun stuff. The mortgage and bills still have to be paid. What's more, some employers who usually pay their staff at the end of the month pay them early in December. That's brilliant for buying the turkey but it plays havoc with January's bills as it can mean spreading money out over six weeks rather than the usual four. So, work out how long your money has to last, plan to pay bills first and only spend what's left.

2. Plan and buy early

Hot ticket items won't get cheaper as Christmas approaches. In fact, they can disappear from view altogether or end up at an inflated price on eBay. If your nearest and dearest wants the latest iPod Touch or Sony PSP, Kelkoo them now so you know what to plan for financially; bookmark your favourite and buy it as soon as you practically can. Planning and buying early is also about spreading the cost of Christmas. Why not buy clothes a size bigger in the January sales ready for the kids' stockings next Christmas, or stock up on Christmas cards, wrapping paper and crackers in January at half price.

3. Keep spending where you can see it

The danger when buying online is to lose track of your spending. No cash has changed hands and often so many different items come from all manner of online stores, so it's easy to forget how many purchases have been made. So, draw up a list of everything that has been bought. Make sure you log the TOTAL COST of the item (including postage and packing) not just the ticket price. And, while it's nice to know that the likes of Amazon will gift wrap your present, it still comes in a cardboard box so is it really worth an extra £3?

4. Change, "What can I get him/her", to "What can I AFFORD to get him/her?"

Shopping is psychological warfare. Retailers use extremely sophisticated techniques to get us to spend more with them. So, beat them at their own game. Before you even consider what to buy for someone, set a limit and then choose a present to fit that limit. Shopping online means there are all sorts of quirky gifts that needn't cost the earth and using Kelkoo will cut your bill down to size.

5. Make your own

The Christmas card list gets bigger each year - and so does January's recycling mountain. A family of four can spend nearly £40 on Christmas cards. Why not either make a one-off charitable donation in lieu of cards or make your own. Kids love getting creative at Christmas and by using a simple print or wrapping paper motif you can create something unique. Save on wrapping paper too by using old wallpaper or newspaper bound with a tinsel bow.

6. Keep lists

Lists help you visualise what you need to buy and what you've spent to date, which helps control costs and avoid expensive impulse buys. There are three essential lists:

• Presents - write a list of names you need to buy for and put your limit next to each name. Then, log purchases against the relevant name. That way, you won't "forget" about the gift you bought in June, hid at the top of the wardrobe and buy something else by mistake.
• Food & drink - plan each meal each day and write down everyone's favourite snacks and treats. Use that to build your food shopping list. That way you avoid over-buying, buying the wrong thing or forgetting something vital. It will probably cost less in the end too.
• Entertainment - log everything down that you see and think might be a good idea, especially the free stuff. Scour the local paper for offers on seasonal entertainment on your doorstep, such as the circus or funfair coming to town.

7. Chose your credit card wisely

The real mantra for Christmas is "Don't get into debt to pay for Santa" but, given that online purchases should really be made with a blue carcredit card for safety and reassurance, the real message in the 21st century is: "You've done your research to make sure you get the cheapest deal on your presents so why waste the extra you've saved on unnecessary credit card charges". To make sure you're wised up and are getting the best deal to match your shopping habits, follow this three step plan:

• Know what interest rate you are being charged on your current credit card deal.
• Know how you shop - do you always pay off your balance in full every month or do you have a habit of taking six months to clear the Christmas bills?
• See if there is a credit card that better suits your spending patterns using this summary of the best deals at the moment as your guide.

Always pay off in full? Choose a cashback card The current market leader is the American Express Platinum moneyback card that pays a whopping 5% cashback for the first three months up to a maximum of £100. After that, the rate drops to a maximum of 1.25%. The drawback is that not all retailers accept Amex, there is also a "dormancy" charge of £20 if you hide it in a drawer and don't spend on it and you have to be a good earner to get one. Want a card for new purchases that you will then pay off over the next few months? Get a 0% deal. The top card at the moment is the Tesco Clubcard credit card which is giving spenders 12 months to repay before it ups the rate from 0% to 16.9% APR. Users can also earn Clubcard points each time they spend with the card. Best of the rest provide interest free rates for up to 10 months. They are from Sainsbury's and Marks & Spencer. With the M&S card you can earn loyalty points which can then be spent in the store. With the Sainsbury card, any purchase at its stores will be 0% for 12 months. Never quite manage to clear the credit card, or clear it just to run it up again? You need the best long term low rate going. Again Barclaycard has got a good offering. Its Simplicity Card charges just 6.8%APR. The next best deals are from Halifax and Co-op. The Halifax Easy Rate card charges a typical 8.9%APR. However, this is typical so you could be charged more, depending upon how you are rated by the bank's credit scoring process. The Co-op Fixed Rate is offering a very tempting 9.9% for five years, although you have to earn more than £25,000 to qualify.

8. Never take cash out on a credit card.

It can be so tempting but never, ever use a credit card to withdraw cash from an ATM. Many credit card companies levy an instant fee for allowing you to do this (of around 2%). Many also charge a higher rate of interest (typically as much as 25%APR, or more) for that portion of your outstanding balance and, what's more, there is often no interest free period so the interest begins to be calculated on that money the moment it leaves the cashpoint. Far better to leave the credit card hidden somewhere away from temptation rather than take it with you on a big night out only to regret it when the statement thuds on your doormat in a few weeks' time.

9. Never use credit card cheques

It looks as though credit card companies are being really helpful, especially at Christmas by sending such convenient little cheques through the post. However, never ever be tempted to take them up on their very kind offer. Like cash withdrawals, credit card companies charge much higher rates on their cheques than on usual card payments and they usually waive the 45-60 day interest free period you get with card purchases too, clocking up the interest from day one. Rip up the cheques the minute they arrive. Better still, contact your credit card provider and ask them not to send anymore. These cheques are an expensive menace, and an identity fraud risk to boot.

10. Don't go overdrawn, there are cheaper ways to borrow

This really is saving the best bit of advice until last, it is that important. Don't go overdrawn. That's it. Unauthorised overdrafts - that is those not pre-agreed by the bank - are expensive. Very expensive. What's more, for the vast majority of people they are totally unnecessary. There are much cheaper ways to borrow and they should always explored first - like 0% credit cards or simple unsecured loans. There are many lenders, from Tesco and Sainsbury's to Nationwide and Alliance & Leicester offering rates of between 7.9% and 9% on loan amounts from £5,000 t £15,000. If you are already overdrawn within a week of getting paid and cannot see a way out of the financial mess, then you could need some more structured help. So, if this scenario sounds familiar, visit the National Debtline http://www.nationaldebtline.co.uk/ for help and guidance. They can walk you through your money issues and help you establish your financial priorities. Only spend what you can afford at Christmas. The best Christmas present is the one given with thought, not the one given with debt.