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People may cringe at the idea of Christmas this early in the year, but in all reality it is the time to put a lock on that checkbook in preparation for the upcoming holiday season. In this economy, Christmas shopping often sneaks up, and being tied down with even more debt is sure to turn you into a first class Ebenezer Scrooge.

By September and October, many people are trying to clean up their debt, either to tie up loose ends by the end of the year or in preparation for the holidays. Whatever the motivation is, ridding yourself of debt is always a good idea. However, many people will open a credit card for Christmas – only to find themselves greeting the next year in an even bigger hole. Better cross your fingers that someone buys you a shovel!

There are several things that you can do to avoid debt during the holiday season. If there is a must-have item that you absolutely cannot pay for with cash, consider layaway. Many stores are reinstating the layaway policy due to the economy. Layaways allow you to make weekly or bi-weekly payments rather than paying the entire price upfront, without the hefty interest rates. Don’t treat layaway as a new form of credit card, though.

The “gotta have it right now” mentality is not a healthy one for the wallet, no matter how the payments are structured.

For those who prefer to save their money ahead of time, many banks have Christmas savings accounts, in which a small sum of money is drawn out of each paycheck and made unavailable until closer to the Christmas season. Savings accounts can work similarly, although you have to discipline yourself not to spend it and not rely on the bank to keep it out of your reach. You can even partition your direct deposit so that part of each check is deposited directly into savings.

Another easy way to save money around the holiday season is to buy gifts here and there throughout the year, rather than having to come up with a large sum of money at a single time. Christmas in July is the newest marketing effort most retailers are using, with many stores offering sales and discounts for those shopping early. Items that do not expire, such as gift cards, can be bought at any time and will hold until Christmas without a problem.

The holiday season does not have to be stressful. By purchasing gifts early, buying on layaway, and using a Christmas savings account, you can avoid high interest payments that bury you in debt throughout the next year.

With the U.S. economy still trying to find its sea legs, it’s no surprise people might sometimes need to turn to professionals for assistance with debt consolidation or credit repair.

But what if you’re not struggling to make monthly payments and have reasonably good credit? Is debt consolidation even worth thinking about?

Absolutely.

At the very least, examining and managing your debt may help you save money (you like money, don’t you?), and at best it could forestall a creeping credit slide that leads to late payments, a damaged credit rating, or worse. Given the do-it-yourself craze that seems to have swept the land, with people making everything from marshmallows to homes on their own, there’s no reason you can’t take on debt consolidation yourself.

First, you’ll need to inventory all your debt. Sites like AnnualCreditReport.com can provide you with a free credit report to get started. Once you’ve listed all your debt sources, including interest rates, payments, and balances, you can develop a strategy for consolidation.

One approach is to divide your debt into groups, like good, bad, and neutral. “Good” debt might be such things as mortgages, business loans, and student loans (provided they don’t have high or variable rates). These have the potential to help your income down the road and are often tax deductible, so they have the lowest priority.

“Neutral” might include vehicle loans or fixed-rate personal loans. They don’t necessarily hurt you in terms of credit or finances, but they’re not necessarily doing you any favors either.

The debt you’ll want to concentrate on first is the “bad” stuff, which usually means they have variable or high rates, like credit cards or payday loans. Start with those with the highest rates, transferring them to accounts with lower rates. You might be tempted to transfer some of these to a new credit card with an attractive low teaser rate, but think twice about this. Will you be able to pay off the balance before the “real” rate kicks in? How high will that rate be? Also, you’ll effectively be adding more capacity for debt to your credit situation — is that really what you need?

If you have good credit, another option might be to call your card issuer and politely try to negotiate a new rate. Even if you shave off just 1 percent, that represents money you’ll be saving later. Transferring to a fixed-rate personal loan from a credit union or bank is another option.

If you’re carrying student loans, see where those rank on your hit list in terms of rates. Remember that federal student loans typically have lower rates, as well as deferral or forbearance options, so those will likely take a lower priority. That said, the federal government does have a site where applicants can attempt to consolidate their federal student loans and possibly lower their monthly payments.

Consolidating your high-interest loans into more reasonable ones — and strategically paying off the most expensive debt first — can reap dividends by saving you money and protecting your good credit rating in the future. By going DIY now, you can prevent your credit from being DOA later.

Just like the stores had Easter candy out before Valentine’s Day was over, tax time is coming soon. April 15 – or 17 – thanks to that oh-so-generous government extension that was granted for the filing of 2011 returns – is only a couple months away.

For many families, tax time is not as painful as it could have been, since last minute measures were enacted to protect some tax credits that may put money in your pocket. But before you get too excited about how to spend that money, we’d like to suggest doing something painfully responsible with your tax return.

We know, the dream vacation or the new car would be a lot more fun.

But a good tax return can really help to turn a bad credit score into a good one, and taking advantage of tax time in such a practical way doesn’t mean you have to give up your dream – just postpone it for a year. You’ll not only improve your credit score, but what financing you do get the next year will cost you less because of it. And really, given how quickly tax time comes each year, the time will fly by.

Depending on the size of your return, you can either pay off some smaller credit card balances completely or you may want to pay off enough on the balance of each of your credit cards to make sure they are each at less than 50% of the limit available. There is no one measure more critical to your credit score than keeping at least 50% of the credit line free.

In the short term, your tax return might by you some fun, but in the long term, if you put it to work for you by putting the return toward your credit card balances, it can significantly change your financial future. Better credit scores mean lower interest rates, better auto insurance rates, and better refinancing options for your home. Better credit ratings can even mean getting that job versus being overlooked (except in California, where it is now illegal to use credit scores in making hiring decisions).

This tax season, invest in yourself and your financial future. And next year, you can send us a postcard from Europe as you enjoy your dream vacation that is costing you less thanks to better credit!