Bilotta isn’t immune to the gift-buying craze that afflicts millions this time of year. “It was so bad, we were buying gifts for my cousin’s dogs,” said Bilotta, who has since eliminated animals from her gift list.
She works in the Pittsburgh office of the Consumer Credit Counseling Service, a nonprofit counseling and educational agency funded in part by credit-card companies.
Americans racked up $457 billion in retail sales last November and December. The National Retail Federation in Washington, D.C., which tracks consumer retail spending, expects a 4 percent increase, or $474.5 billion, in spending this holiday season.
That’s a slightly more conservative estimate than in recent years, but it’s in keeping with a financial forecast that isn’t as rosy overall.
“Retailers are in for a somewhat challenging holiday season as consumers are faced with numerous economic obstacles,“ said NRF Chief Economist Rosalind Wells. “With the weak housing market and current credit crunch, consumers will be forced to be more prudent with their holiday spending.”
In the fall, the phones at the Consumer Credit Counseling office begin to ring — and don’t stop ringing for months — as people look for ways to avoid the pitfalls of overspending or seek help with mounting bills come January. That’s why the agency puts out a publication called ‘‘ ’Tis The Season, Hold Onto Reason.’’
Here at Smart, we’ve put together our own guide for surviving the holidays.

The Season's Six Sanity-Savers

Sanity-Saver No. 1
Sit down and come up with a plan

It might sound like a boring time-waster when there is so much shopping to be done, but nothing keeps a consumer on track like a plan and a budget. A simple 15-minute brainstorming exercise can keep you from veering off course.
Take a piece of paper and a pencil, draw five to seven columns down the page, make headings such as “Gifts; Decorations; Cards and Postage; Baking; Entertaining; Clothing.“
The goal here is to start thinking before you spend. If you tracked last year’s holiday spending, use that as a guide. But if you’re reading this article, you probably didn’t. So, as Consumer Credit’s Bilotta advises: The more prepared you are, the more organized you are, and the less you are going to do impulse buying.

Sanity-Saver No. 2
Cash-only spending and last-minute saving

It’s not too late to create a savings system that will allow you to accumulate a couple of hundred dollars between now and Dec. 24.
Some spenders use an envelope system at home. They label several envelopes — bills, vacation fund, holiday fund — and set aside money each pay period to save toward those goals. This system isn’t for everyone, though.
“If you know you’re going to steal from yourself, don’t even do the envelope system,” Bilotta said. “Put it in the bank where you can’t get to it as easily.”
Several credit unions and smaller banks still offer Christmas Club accounts, basically an envelope system that’s not in your house. At First Capital Federal Credit Union in York, Christmas Club accounts are released into customers’ savings account on Oct. 1, allowing them to withdraw the money without penalty and start shopping. Money withdrawn before that date results in a $10 penalty, said Sharon Miller, manager of the Kenneth Road branch.
Payroll deductions are a popular, no-hassle way to direct money into that account, she said. It’s not too late to start saving. Miller said those wanting to start a quick Christmas Club-type account after Oct. 1, can do so under another special fund, offering the same 1 percent interest rate. For nonmembers, there is a $6 charge to join and open an account.

Sanity-Saver No. 3
Quiz yourself

This Q&A is meant to add another layer of thinking and parsing to the preshopping trip and put the brakes on emotional spending.
• How much can I afford to spend?
First, look at all fixed expenses — mortgage, utilities, food, miscellaneous costs.
Next, review savings accounts, tax refunds, Christmas Club accounts — any squirreled-away money that’s available to spend without penalty.
Take note of any anticipated expenses in the next six months or year — vacation, home repairs, orthodontist bills.
Leave enough to cover those anticipated expenses and some unanticipated ones as well.
Once you’ve done a financial snapshot, pick a realistic figure, one that will give you some breathing room come January and February when bills start to arrive. Write the figure at the bottom of the paper.

• Begin to fill in the other blanks. . . . How many people do I need to shop for this year? (Note the word is need, not want.)
Mark under the “Gift” column every person on your list — and include, if you must, people on the list because they bought you something last year. But have an eraser at hand.
Decide your holiday card list, estimate how many cards you will need to buy and how much postage will cost.
Do you need to schedule and pay for holiday portraits of the children? Will you buy any new decorations this year? Will you host Christmas dinner? Or invite friends for a casual holiday get-together?

• When buying for your children, ask yourself: How many toys from last year do they still play with?
If the answer is “none,” then your gifts had no staying power, and they didn’t successfully engage and sustain your child’s interest.

• Where will you store the toys once they’re opened?
Professional organizer Tammy Burke of Dallastown said, “I don’t want to be Scrooge at Christmastime.” But she sees homes crammed with too much stuff, and parents overwhelmed and exhausted from trying to maintain it.
“The kids also can’t handle so much. They tend to be better off with more carefully chosen toys.” What looks like a great idea in December can turn into a storage-hog and dust-collector by March.

Sanity-Saver No. 4
Credit cards or no credit cards — that’s the question

A credit card can make an undisciplined spender feel like the richest person on earth. It can give a person a sense of power, of entitlement, of security. Yet all that comes crashing down when the first bill arrives in January. That’s why a number of financial advisers suggest leaving the credit card at home, especially during holiday times.
Bilotta advises limiting card spending to 15 percent to 20 percent of monthly net income. That’s about $300 a month for someone with a monthly income, after taxes, of $2,000, or an annual income of about $30,000.
To keep a better on-the-spot tally of spending, wrap an index card around the credit card, fasten it with a rubber band, and record every transaction as you charge it, Bilotta said.
“Plan credit-card purchases as much as you plan cash purchases. It’s very easy when money doesn’t seem like it’s coming out of your wallet. That accountability can help a shopper know when it’s time to stop spending and go home. It’s important to see how easy it is to get in over your head,” she said.

Sanity-Saver No. 5
Creative thinking and bottom-line behavior reduces stress

• Gifts: Look at your gift list again. Count the number of people on it. If there are more than 20 people listed, you’re already at $200-$400 for gifts alone. And that doesn’t factor in multiple gifts for spouses or children.
Bilotta knew she’d gone too far when she was buying gifts for four-legged friends. So she and her family decided to rein in the gift-giving. “Mentally we said, ‘This is getting out of control.’ ” So they started by eliminating pets, then people who weren’t close relatives. It allowed them to come up with new traditions that reclaimed the spirit of the holiday. Some families opt for drawing names for adults or kids, or buying joint gifts for parents, grandparents and children. Limiting the number of gifts to buy saves money. So, too, does thinking before you buy. Procrastinators, in their haste, tend to overspend and buy castoff gifts.
“The worst thing you can do is wander around the mall,” Bilotta said. That’s physically — and fiscally — draining. So, call up relatives and ask them for a few ideas before you head to the store. (After too many years of slippers and scarves for her grandmother, Bilotta and her family now buy her grandmother all the things she needs to stock one room in her house. They rotate rooms each year.)
Gift cards are another way to stay on track financially, with preset values on cards.
Burke, the professional organizer, said cash can be a good gift for grandparents to give. She takes cash gifts for her 5-year-old son and puts them into his savings account. Then, as he wants things throughout the year, she withdraws the money and together they make the purchase, and he learns an important lesson about saving. (She also advises parents to select gifts with minimal parts and pieces to reduce post-holiday cleanup headaches. Even if the 100-piece gift was a good deal, resist the discount in favor of a better-made toy with fewer pieces to lose and manage.)
• Gift wrap: Hit the Dollar Store and stock up on gift bags, tissue paper and inexpensive wraps and bows, and gift tags. Keep an eye out for no-fuss yet attractive options such as fabric totes or baskets. (Check out page 32 for ways to turn cheap brown paper bags into gift wrap.)
• Decorating: Make do with last year’s decor, or limit yourself to one new holiday decoration per year, or budget $50 to allow for a few new items.
• Entertaining: One word— potluck. Turn your annual holiday party from a high-stress hosting gig into a low-key neighborhood get-together where everyone pitches in.
• Baking: Host a cookie-baking swap that allows you and your friends to make favorite recipes that you swap and keep for greater quantity and variety. Or, eliminate endless baking and pick one or two recipes you like, make them, and you’re done.
• Shopping success: Look at your calendar and plot your shopping days. Arrange a babysitting swap with a neighbor so you can get three to four hours of kids-free shopping one weekend; then help her out next weekend. (Let the kids do a holiday craft during that time, and that takes care of a homemade gift for Grandma and Grandpa.)

Sanity-Saver No. 6
It’s never too early to start saving and planning for next year.