With so much focus this season on saving while shopping for presents, one can easily forget how holiday events themselves can entail significant costs aside from any wrapped gifts. J.D. at Get Rich Slowly provides some excellent advice on Christmas frugality. Two of his best tips are:

1. Hold the family gathering after December 25th. The full range of supplies for the any celebration is heavily discounted.

2. Focus on family traditions, not the gifts. Kids enjoy consistent traditions and relaxation with family as much or more so than expensive presents with fleeting value.

Other great ideas for holidays on the cheap include:

• Sharing meal preparation with your guests to help even out the costs of food and supplies
• Building a family history
• Playing board games that you already have access to
• Watching and playing sports
• Sharing family stories and telling jokes
• Burning CDs of holiday music for enjoyment the next couple of weeks
• Playing in the snow, hitting the beach, swinging by the park, or hiking – depending on location and weather conditions
• Building and enjoying a fire in the fireplace
• Singing carols

The rituals of gifting during the holidays go back deep in history. Everyone feels an obligation to give something to someone, so if the topic comes up this year, consider asking for a contribution towards paying down outstanding debt. Such a gift will hands-down beat a moose sweater, candy cane socks, or yet another indiscernible contribution towards the tie collection.

Here’s three options on how to ask for the debt contribution:

1. “Though any present would be thoughtful during these tight times, I really need to focus on paying down some of my current financial obligations, so if you are thinking of giving me something, please make it a contribution towards my debt elimination fund. It doesn’t matter how small or large your donation is – it would be highly appreciated.”

2. “The economy has made things really tight right now, so the best gift I could receive would be a monetary contribution towards my personal debt relief fund. Thank you for all of the support – financial and otherwise. Here’s to a debt-free 2009!”

3. “The holidays are all about coming together and supporting one another – and celebrating relationships in the process. I’ve made a major decision in my life to quickly eliminate all of my existing financial obligations as soon as possible, and so I ask that you consider giving me a monetary contribution towards helping me get out of debt instead of a traditional present. The joys of becoming debt-free and leading such a lifestyle will greatly outweigh the fun of a new sweater or music album, and will ultimately make my relationships that matter – those of friends and family – much stronger.”

Here’s three avenues for asking for the contribution:

1. Email to friends and family. Write and send an email to friends and family providing an update on your life and best wishes for a great holiday season. Then conclude with your new suggested present of a contribution.

2. Insert into holiday cards. If you have a habit of sending out cards to friends and family, include a short personal note that asks that all gifts this year instead be contributions towards getting out of debt.

3. Mention during a phone call. Work into your conversation during a phone call to friends and family your desire for a contribution towards eliminating your personal debt instead of traditional gifts. This can be highly effective given the solemnity that you can display while asking. Mention that normal presents are always appreciated, but that the current economic conditions make personal financial health jump to the top of your wish list.

Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.

With finances tight there’s a perennial way to generate some instant cash – selling things in your home. The benefits to clutter control include getting more easily organized, identifying forgotten items that you can use in lieu of buying new ones, and creating a more open, enjoyable space in your home that is focused on people rather than stuff. The uses of the instant cash received include helping to smooth out a budget and paying down outstanding debt. While much is written about this, the following items in particular can generate the most money:

1. Old laptops/computers. Rather than keep the laptop or desktop that you replaced, format the hard drive, wipe it with a cleaning cloth, and sell it on an online marketplace. Students on a budget might appreciate the chance to own a mobile PC for far less than the cost of a new one, or anyone with basic productivity needs for that matter.

2. Recreational toys/equipment. Items like trampolines are great for empty-nesters to get rid of, as are other children’s toys, some of which are quite expensive. This fits well with the trend this holiday season of buying used toys for kids as gifts.

3. Redundant furniture. Chairs especially, since oftentimes additional ones are bought for special events that later may experience little or no use.

4. Rugs. These can be expensive, and many actually appreciate in value over time. Often they don’t suit the house or apartment. They’re even better prospects for sale if they spend their time rolled up in the garage.

5. Jewelry and watches. You may not need several sets of these luxury items and they continue to hold much of their value as they age.

6. Antiques. Any of these that sit in the garage are prime suspects for the axe. Even ones that clutter your home may not hold much functional value.

7. Television sets. Older or extra TVs are sometimes lying around the house, especially if you’ve recently upgraded to a flat-screen model like a plasma or LCD. Even selling the one you use that sits in the bedroom might be a good move since research has shown that having TVs in your bedroom decreases your quality-of-life.

8. Movies. Many have huge collections of DVDs that go unwatched. Why not sell them off either individually or as a bundle set and pocket the cash? This is also a great way of being artistic by pledging to keep only the top five personal favorites.

9. Outdoor tools. Expensive power tools or carpentry sets are oftentimes bought and then go unused. Many yard/gardening contraptions are both expensive and never see the light of day.

10. Paintings. Art that sits in storage is one of the best things to sell. Paintings and other art objects in the house that aren’t particularly striking may also be great liquidation targets.

Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.

It’s tough to get a comprehensive view of all of one’s outstanding educational debt. This is frustrating especially if you have a suite of different loan types and sources to fund your undergraduate and/or graduate years. But putting forth the effort to see the total picture will pay dividends in averted late fees, lost interest rate breaks, and other factors that can delay your arrival to “debt-free” status.

1. CREATE A PLAN AND GET ORGANIZED

Set aside a specific time during normal business hours to give your undivided attention to sorting out your outstanding debt sources, amounts, and repayment terms. To get clarity you may need to call the Federal Student Aid Information Center and/or private loan lenders, which are all more easily reached during the day.

2. FEDERAL VERSUS PRIVATE LOANS

Know the differences between your private and federal student loans. Your educational debt may be comprised of only federal loans, only private loans, or a combination of the two.

FEDERAL LOANS

Most students in educational debt have federal loans, which are typically one of four types: Perkins, PLUS, Stafford Subsidized, and Stafford Unsubsidized. All of these can be consolidated into one federal loan at a fixed interest rate. There are several repayment term options, some of which depend on your total outstanding amount of educational debt. You can consolidate your federal loans from different lenders all into one lump loan. This is even true for federal loans that are issued by the same lenders as your private loans.

PRIVATE LOANS

Private loans are educational loans provided by nongovernmental lenders such as banks. There’s been a large jump in the percentage of students relying on private loans instead of federal loans to fund their studies, and this is problematic because they are harder to pay off. They cannot be consolidated with federal student loans. They typically have variable interest rates and in the current economic downturn, many lenders are not even allowing them to be consolidated with other private loans. For most, the best debt elimination strategy entails paying off private loans before the federal ones.

3. GRACE PERIOD

If you’ve finished school and cannot generate income to start payment on your educational debt, there are alternatives to incurring penalties and fees for missing payments. One is the grace period: a period between the completion of a degree or falling below half-time enrollment and the need to start normal repayment. The grace period varies by loan type, but falls in the range of several months. Grace periods vary by loan, so if you choose to go into a grace period for a particular loan, make sure to find out how long it will last. Choose this option instead of defaulting, because just one missed scheduled payment can permanently disqualify you for bonus interest rate reductions.

4. LOAN DEFERMENT, LOAN FORGIVENESS

You make be able to qualify for either a deferment or loan forgiveness. Loan deferment involves delaying payment on outstanding educational debt. You can almost always defer repayment on outstanding educational loans if you are enrolled at least half-time in a school. The deferment programs are numerous and a solid list is on the Federal Student Aid website. For the unemployed, popular deferment programs include the Economic Hardship Deferment and the temporary forbearance option.

Partial loan forgiveness is available from a number of federal, state, and educational institutions. They range from Peace Corps volunteering to teaching to the military and public sector positions as trained doctors and lawyers. A good list of the options is available at FinAid’s website.

5. AVOID DEFAULT

Most critically, avoid defaulting on the debt. The Project on Student Debt contains other valuable tips, but the single most important factor in effectively eliminating debt is to get organized and make a plan, no matter how far or near deadlines loom.

Stay tuned for more quick tips on debt.

Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.

It is not uncommon for students, especially low-income students, to drop out of college after accumulating thousands of dollars in student loan debt. The American Association of State Colleges and Universities provides sobering statistics. Nearly one in five students who do not graduate from college leave with $20,000 in student loan debt. Borrowers who drop out earn lower incomes and face a high risk of accumulating unmanageable debt that is likely to result in forbearance, default, or even bankruptcy. When students face these financial hardships, they are more likely to require state services such as Medicaid if they are uninsured and unemployment benefits if they are out of work. The long-term burden of debt not only affects individual borrowers’ futures; taxpayers may find themselves providing additional resources to those who cannot keep up with their debt repayments. Living with unmanageable debt presents graduates with genuine fears about entering college, completing college, pursuing post-baccalaureate degrees, and choosing a career. Living with unmanageable debt presents even greater problems for those who drop out of college.

Discussing options and coming up with a plan for children currently in college is important. But for those families anticipating sending students to college in the future, coming up with a strategy for their education is just as critical, especially since amany students finish college with both educational and credit card debt. Repaying both is compounded not only by limited earnings relative to an entire career span, but also the challenge of organizing multiple accounts that the student holds. Any plan formed should be the outcome of a dialogue that includes:

• Where to apply, since applications are costly

• Local options versus schools outside of the area, since the costs of cross-country travel will add up over the course of one’s 4-5 years in school

• State versus private institutions, since tuition is typically much lower in the former

• Community college and transfer options if available, which can decrease the cost of attaining a bachelor’s degree even more than attendance at a public university for all college years

• Research on scholarships, which are numerous and relatively plentiful for students who have not yet earned a bachelor’s degree.

Considering the various options’ impacts on one’s debt status will be key in moving towards debt reduction and management. The Project on Student Debt provides helpful information on financial aid at a number of American universities and colleges.

Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.