Now, I know you've all done your holiday budget.  I know this because it was part of the Christmas countdown.

That means you know how much you can afford to spend on each aspect of your holiday celebration: gifts, decorations, cards and postage, travel, clothing, party and holiday meal food, etc.

Do a quick double-check to make sure your budget is realistic. You are not going to do Thanksgiving dinner for 30 people for $50 unless it's potluck. You also need to make sure that you have the budgeted funds actually available.  Available means in your checking or savings account, dedicated to holiday expenses. The credit limit on your credit cards is NOT available funds.

Going into debt for holiday expenditures is beyond stupid. The money you spend isn't what makes the holiday special. And spending the next year digging yourself out of debt is a sure-fire killerer of the holiday spirit.

That doesn't mean you can't use your cards when it shop. Using the cards is fine under the following conditions:

• You stay within your prescribed budget.
• You pay off each card within the billing cycle
• You don't already have a balance on these cards.
• You plan to keep a close eye on your online account to watch for identity theft.

If those things are true, using the cards can have some benefits.  You may earn cash back or points. In case of a dispute with a merchant, you have someone to take your side. If someone picks your pocket or grabs your purse (we'll talk about shopping security tomorrow), it's much easier to cancel a credit card than to get your cash back.