Holiday Debt

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When it comes to holiday shopping, sometimes our eyes are bigger than our wallets, and at a time when there's an historically high default rate in credit card repayment, going into further debt could be devastating for some families.

Debt consultant Allen Turnage says parents need to be honest with themselves and their children about what is appropriate.

Turnage says, "When the bill comes, if you can't pay the bill in full or over the first couple of months of 2006 then it may be something you need to really consider, give it a long hard thought before you buy something."

Turnage also says to set your spending budget based on 2006, not 2005, taking into account higher fuel and electricity prices. Do not count on your tax refund. Instead, save that money for emergency purposes.