Suze Orman Has This Advice for Avoiding Credit Card Debt During the Holidays

It's certainly worth listening to what she has to say.

The holidays tend to be a magical time -- but also, an expensive one. And part of the reason is that there's a lot of pressure to purchase gifts for the people in your life. This might include your children, whom you really don't want to disappoint.

If money is tight, though, then there is the potential for the holiday season to drive you into debt. And even if you're doing okay financially, it's easy enough to lose track of holiday purchases and end up with a credit card balance you're then stuck accumulating interest on.

Not only can credit card debt cost you money in terms of interest, but it can also cause damage to your credit score. And once your credit score takes a hit, it can become more difficult to borrow money affordably, whether in the form of an auto loan, a personal loan, or a mortgage.

That's why your best bet is to try to avoid holiday debt in the first place. And financial expert Suze Orman has some great tips for doing just that.

1. Only pay with cash

Paying for holiday purchases with cash means giving up credit card reward points or cash back on your purchases. But it can also help you steer clear of unwanted debt. If you're paying for items with cash, it means you physically have the money to cover those purchases. You won't have to worry about not being able to pay off a credit card bill in full once it comes due.

2. Go the homemade route

When it comes to gift-giving, it really is the thought that counts. And there's no better way to convey that sentiment than to create gifts with your own hands. Doing so could save you a lot of money compared to what you'll spend buying gifts in stores. And that way, you'll know you're giving your friends and loved ones presents that are truly unique.

3. Be mindful of your giving circle

It's nice to want to give out gifts to family members, friends, colleagues, and neighbors. But there may come a point when you have to tighten that circle and cut a few recipients out. If there's an old college friend you really haven't seen all year, you don't necessarily have to send a gift by mail. Similarly, you may decide to buy a gift for your boss only, as opposed to the 12 people on your team.

At the same time, have an honest discussion with the close people in your life you tend to exchange gifts with. You may decide that instead of swapping presents this year with your old college friends, you'll instead do a Secret Santa-type exchange so you each have to buy one gift, not 10. Or, you might decide to skip the gifts entirely and instead, chip in for a potluck dinner you enjoy together.

Avoiding credit card debt during the holidays could also help you avoid the stress that comes with owing money and racking up interest on purchases you've made. Follow these tips from Suze Orman to steer clear of debt -- and enjoy the holidays to the max.