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How to create and maintain a holiday budget

Making a list before you start shopping can help keep you from going overboard with your holiday spending.

INDIANAPOLIS — Responsible seasonal spending.

While it's not a fun topic, it's an important thing to talk about since many people are still paying off last year's purchases.

Ted Rossman with Bankrate.com said they recently found that 60% of people with credit card debt have had it for at least a year.

"I would urge people to try to avoid the holiday debt hangover in the first place," Rossman said. 

To create a holiday budget, create a Google document or note section in your phone that lists everything you want to buy.

A digital list can be easier to update as you shop. A Google document can also be shared with a partner. 

Not only do you want to include gifts, but the less obvious stuff like holiday cards and postage, gift wrap, the tree and food.

A celebration meal budget is especially important, since food at home is up 12.4% year over year.

Credit card interest rates are also up this year

"I do think it's risky to take on credit card debt," Rossman said. "The average credit card rate is approaching 19%, which is the highest in 30 years."

Instead of buying for every extended family member, suggest a Secret Santa so each person only needs to buy one gift.

Finding sales and couponing will also be an important part of saving money on food. 

If you're hosting, ask guests to contribute a side dish. 

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