2008-07-21 23:02:10 -

www.thedebtdiva.com - For CareOne Services Stephanie Skordas, 336-553-1803 sskordas@rlfcommunications.com It's been a tough summer for consumers, with rising gas prices, food costs and a looming credit crunch. With more gloomy news on the horizon, The Debt Diva, Clarky Davis, says smart consumers should start preparing for the holidays now.

"It's hard to think

about Christmas in July," Davis said. "But doing your planning and some of your shopping now can protect you from going deeper in debt at the holidays. A little creativity can help you have a fun and frugal holiday."

The holidays are expensive for many households and could be even more difficult this year if the economy continues its downturn. Having a strategy in place now will help you get through the holidays with great gifts for loved ones and protect you from that holiday frenzy that can lead to overspending, especially to compensate for any belt-tightening you're doing.

Set a Budget

Set a holiday shopping budget for each person on your list now and force yourself to stick to it. The shopping season doesn't have to leave you with a mountain of credit card debt.

Be Organized

Planning ahead will save you time and money during the holidays. If you start now, you can save a little money each month for holiday shopping, which means you won't have to whip out those credit cards.

Ways to save money for your holiday shopping fund:

-- Start a holiday savings account at your bank. Have 10 percent of your paycheck automatically drafted to the new account so you never realize it is missing.

-- Clean out storage areas or clutter spots in your basement or garage and have a yard sale this summer. Set that money aside for gifts or holiday entertainment.

-- Sell valuable items online through sites like eBay and Craigslist.

-- Get a part-time job to make extra money.

-- Sign up for deal e-mail alerts on frugal online sites like the Bargainist to snag great gifts.

"Be on the lookout for holiday gifts throughout the year," Davis said. "Keep a storage area in your home for these gifts and write down the presents you buy to keep track.

Spice it Up

Consider a gift exchange if you have a large group:

-- Secret Santa - Members of a group are randomly assigned other members to whom they anonymously give a gift

-- Gift Themes - Choose a theme for the gifts.

-- Exchange names - Draw names and purchase a nice gift for that one person.

-- White Elephant - A fun game where each person contributes one gift and ultimately walks away with one different gift from the game. The type of gift is decided ahead of time, for example a gag gift.

Get Creative

"Frugal gifts will last a lifetime," said Davis. "These ideas should come from the heart and people will appreciate them more because they come from you instead of your pocketbook."

Great Frugal Gifts

-- Themed gift baskets - example: things for the bath

-- Picture frame with a special photo

-- Homemade stationary

-- Candy jar full of treats

-- Homemade cookies in a decorative tin

-- Personalized recipe book

-- Offer your spouse a coupon book of favors - example: taking out the trash, doing the dishes, washing the car, that won't cost you a penny but earn you big rewards in goodwill.

"It might sound awfully early to start thinking about the holidays in July, but if you plan ahead you can avoid the holiday guilt that will come later," said Davis. "To get started, find some way to get yourself in the Christmas spirit in the summer by listening to carols or visiting a year-round holiday store."

About The Debt Diva

Clarky Davis has more than five years of experience in the debt management industry and more than 10 years of hard-won personal experience with credit cards and debit cards. The money saving tips the Debt Diva offers have all been tested and proven by the glamorous girl herself. Davis now offers these hard-won insights to others seeking to maximize their tight budgets and deal with debt.

About CareOne Services

CareOne Services was formed in 2002 to provide consumers with multiple solutions to complex money problems. CareOne Services Inc. boasts a unique Financial Fitness Center that examines each consumer's individual financial situation and develops a personalized solution to help the consumer get out of debt and strengthen his or her financial footing.

Avoid Debt and Save Money This Holiday Season by Starting Early