Dennie Quill, Contributor

SO, HOW did you do this Christmas? If you were among those who worked up a shopping frenzy by indulging in everything from the newest decorations to must-have techno gadgets, entertainment, parties and travel, chances are you will be swallowed up by holiday debt. The day of reckoning is not far off and when the shock of the new bills hits in January, you may have to devise a plan to dig your way out of this debt. In reality, you could be paying for Christmas 2007 way into 2008.

Society tends to gloss over holiday excesses and frenetic consumption. Consumers are not cautioned about the consequences of spending choices; it's not in the interest of merchants or the administration to urge fiscal responsibility, because when we hear the grand announcements about billions of dollar in circulation it gives an illusion of prosperity. While merchants beam in anticipation of a big pay day, consumers rarely give a thought to their own contribution to that pool of funds and how it may affect their long-term financial health. When one adds the holiday debt to everyday living expenses, whichare spiralling out of control, one hasa prescription for depression - deep depression.

Easier with plastic

Yes, the holiday is a time of stress and many of us are affected by financial blindness as we get caught up in the holiday gift-giving angst. It has become so much easier with plastic. Researchers say people spend 30 per cent more with credit cards than they do with cash. Spend now and think about it later. Sadly, so many of us forget the reason for the season and believe gifts are the best way to express our compassion and love.

We have all done strange things under the stress of the holidays. We want to bolster our reputation as a compassionate person, so we buy a gift for everyone at the office, including folks who resigned three years ago. Maybe your best friend has a family of six and you feel obliged to give everyone a gift. That can be very costly. So, the smart thing to do is to buy something that the entire family can enjoy, say tickets to a movie.

Sometimes we get caught up in reciprocal giving. Last year the neighbours sent us a case of wine; this year we have to outdo them and offer them an all-expense paid holiday to Cancun. While the decorations from last year may be quite fine, you find that this year, manufacturers have come up with some new, shiny objects, which they convince us we must have for our décor. I know, because I have been there.

Mature spending

How did I do this Christmas? I have come to embrace some advantages of growing old, like becoming more level-headed about spending. My approach to Christmas celebrations has matured and I no longer feel the need to get something for everyone. I have trimmed my list and I do not suffer from 'unnecessary guilt gift'. Instead of buying and posting Christmas cards, I have discovered the joys of e-cards - nothing random. I spend hours choosing the right card for friends and family members, and I save a great deal on that one activity. When it comes to giving gifts, my experience has been that half of the people never say thank you and I am left wondering whether I made a bad selection. I usually emerge from Christmas holidays poorer and angry. Not anymore.

The question many of us will face in 2008 is how to regain control over holiday spending next time around. It would be foolish to repeat the same mistakes. So, here are a few suggestions. Starting now, right now, make up a budget for Christmas 2008 and make a list of the special people you want to give gifts. Along the way, a few others may emerge. Plan to spend no more than one per cent of your after-tax salary on gifts. I guarantee that if you begin now to incorporate some fiscal discipline in your holiday choices it can be duplicated for the rest of 2008 and way beyond. You will escape holiday-hell next year and your Christmas will be happier than ever.