I have received requests for a ‘top ten list of ways to save’ this holiday season, so here goes:

1. Make a list and cross yourself off the list.
2. Set spending limits. If your limit is $20 per gift, don’t buy $25 gifts.
3. Don’t try to buy holiday spirit. Instead try listening to music or baking cookies.
4. Start a new tradition. Draw names or give family gifts rather than individual gifts.
5. Regift. Some gifts are better the second time around.
6. Give time (i.e. yard work, babysitting). Free to give, but valuable to the recipient.
7. Shop second-hand. Everyone knows that reusing and recycling are smart things to do.
8. Get creative. Knit something, cook something, get crafty.
9. Know that setting a good financial example for your children is a priceless gift.
10. Finally, when you finish shopping—stop shopping!

I guess what I’m trying to get at is that this holiday season doesn’t have to be like the ghosts of Christmas’ past. Just because you’ve “always” done something a certain way doesn’t make it the right way.

I’d like to challenge you to think outside of the gift box. Please share your holiday spending tips through the comments section.

If you’re like most people, you are planning to scale back this holiday season. The National Retail Federation’s (NRF) 2008 Holiday Consumer Intentions and Actions Survey predicts the lowest increase in planned consumer spending since the survey began in 2002. In addition, consumer confidence fell to an all-time low in October.

The NRF survey reveals that consumers plan to spend an average of $832.36 on holiday-related shopping, up what is described as a “paltry” 1.9 percent over last year’s $816.69. When you consider the fact that the consumer price index is higher by almost 5 percent over last year, the small increase in planned spending actually represents a decrease in buying power. Clear as mud, right? The bottom line is that we all need to think of creative ways to minimize the financial impact of this holiday season.

If you plan to change the way you approach the holidays, we’d love to hear from you. Our communication and education teams are busy preparing materials and tools to help consumers financially survive the holidays. What financial information or tools would be most helpful to you?

The Conference Board’s Consumer Index fell to an all-time low in October.* Cautious consumers know that the ghost, ghouls and goblins of Halloween aren’t nearly as scary as the financial damage a major credit mistake can cause. Knowing common loan mistakes can help you to avoid making a risky financial move.

Mistake 1: Agreeing to cosign. Cosigning a loan carries many risks and very little reward. Basically, you are being asked to assume a risk that even a professional lender is unwilling to take. Studies of certain types of lenders have found that for cosigned loans that go into default, as many as three out of four cosigners are asked to repay the loan. The bottom line is that if you are not willing to assume totally responsibility, you should not agree to sign for the loan.

Mistake 2: Not reading the fine print. When you obtain a line of credit or loan, you are entering into a legally binding agreement. Be sure what you are getting into by reading and understanding the fine print. For example, one major lender’s policy reads: “Factors considered in determining the Default Annual Percentage Rate include the frequency and severity of account defaults…and risk on other credit accounts.” This means that they could raise your rate if your overall credit situation changes. This is true even if your payments to the individual creditor are made on-time and as-agreed.

Mistake 3: Obtaining a “cash advance” loan. Often called Payday Loans, these short-term, high-fee loans can turn a temporary setback into major financial crisis. Let’s say you wrote a personal check for $330 to borrow $300 for up to 14 days. The lender would agree to hold the check until your next payday. At that time, the lender deposits the check, you redeem the check by paying the $330 in cash, or you roll-over the check by paying a fee to extend the loan. In this example, the annual percentage rate (APR) is 260.71 percent!

Know of another scary loan mistake? Share it through the comments section.

*This info does not bode well for retailers who are already bracing for a tough holiday season. More on this tomorrow…