SALT LAKE CITY (KUTV) — Though it’s only October, now is the ideal time to make a holiday shopping list and set a budget to ensure a more stress-free holiday.

Setting a budget now is one way to avoid overspending and potential debt in the new year.

Beth Hunsaker, an accredited financial counselor, said looking at last year’s spending can provide a useful starting point for setting this year’s holiday shopping budget.

“Pull out your bank statements, credit card statements. You might be surprised at how much you spent last year,” Hunsaker said.

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Hunsaker also advises consumers to account for hidden costs such as stocking stuffers, wrapping paper, and decorations and food. Conducting an inventory of holiday supplies can help prevent unnecessary purchases.

“Can you reuse things? We don’t have to dress our house to the nines every year,” she said.

For those who use credit cards for holiday shopping, Hunsaker warns of the high yearly interest rates. Current credit card rates average well over 20%, with some in-store credit cards reaching above 30%.

“The holidays are about fun, family, and togetherness. You don’t want the stress of debt hanging over your head,” Hunsaker said.

If your holiday list gets too long, Hunsaker encourages open conversations with family about setting limits on gifts — they might be happy you did as everyone is feeling the pinch of high prices.

Hunsaker said ideally, you’d save money throughout the year from each paycheck and build your holiday fund throughout the year.

But if you do rely on credit cards, set a budget anyway and create a plan to pay off the credit card debt by the end of January, then start building your holiday fund for the next holiday.

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