1. Before you can know how to approach holiday spending, and what plan is right for you, you need to know how much you owe. So, check your current balances and APR. You need to know what rate you are being charged, and odds are there's a lower rate out there somewhere, perhaps with a special 0% promotional rate on balance transfers. If you are lucky you can win the balance transfer game and owe zero interest while chipping away at your balance. By figuring out how much you owe, and what it will cost you, you can get a sense of how much you can afford to spend on this year's gifts.

2. Ask your credit card company for a better interest rate to keep you as a client. This is a threat well worth making as your card company knows that it generally costs them more to secure a new customer than it does to keep an old customer happy, so they will generally be willing to work with you. Start by asking your issuer to sweeten the deal in order to keep your business. Things like asking for a lower rate, waiving an annual fee, raising your credit limit, or crediting a late fee are all things you can ask for. If they won't do it then tell them you will get back to them after you transfer the balance to another card, so that you can cancel. The word cancel will usually get their attention.

3. If you intend to spend a lot during the holidays, it is a good idea to look for a better card, preferably one with a 0% interest promotion for six months or more. This will mean you can do your holiday shopping, and pay it all back over six months, interest free. Of course, you will have to budget to pay them off, and stick to your budget. Check out LowCards.com, a consumer resource that can help you find the best card for you. This is only a good option for those with low debt and the ability to pay it back. Six months interest free does little good if you do not take advantage of chipping away at that debt during those six months.

4. Make smart choices about which card you will use. For example, if you intend to travel this holiday season, use a card that gives you rewards for travel, gas, etc. Or use a card like Upromise that pays down your student loans. Then buy all of your holiday gifts with it, so your spending helps you some.

5. If you already are carrying high balances then resolve to keep it simple this year with homemade gifts and thoughtful acts of kindness instead of spending more an putting yourself in a bad financial situation. You won't regret it. Or give yourself the gift of eliminating a debt by spending what you would have spent on the holidays on paying off a high interest credit card.

If you do these things you will be ready for the holiday spending you will do, and end up paying less in the long run for it. So go ahead, talk to your credit card company, look for better cards, or lower rates, or resolve not to spend, and enjoy the financial freedom no debt gives you.