Dave Ramsey: Make a game plan, avoid debt this Christmas shopping season

Dave Ramsey is a best-selling author, nationally syndicated radio talk-show host, and host of a nightly spot on the Fox Business Network. Ramsey says many consumers do not budget for Christmas shopping -- and as a result, end up even deeper in debt.

"When you know you're facing a financial hangover on the 26th of December and you're going to take until July to pay off your Christmas credit card debt -- which is what the average American did last year -- that's in the back of your spirit, it's in the back of your mind, it's down in the pit of your stomach," the financial advisor states.

Ramsey says consumers must have a game plan for their Christmas shopping. "I've got a good friend named Santa Claus, and he says make a list and check it twice -- and that's what I believe in doing, too," he shares. And what does one do with the list then?

"You put a dollar figure besides each person's name and what you want to buy them, and you total that up, and that's called your Christmas budget," he continues. "And if you don't have the cash to do that, [remember that] you're not Congress -- you can't just keep voting yourself a raise and spending money that's not yours. You need to cut that budget back if you don't have the cash to do that."

Ramsey points out that retailers make the bulk of their profits during the last two months of the year. He encourages Christians to be disciplined and responsible with their money, especially this time of year.

"I would just take cash and put it in an envelope, write my Christmas list on the back of that envelope, and go shopping," he recommends as a method of financial discipline this time of year. "You're going to have more fun doing that because you're not going to have this sense of being out of control."

He likens it to someone who struggles with weight problems but finds themselves overeating. "That's not fun," says Ramsey. "They have this sense of ... not winning [and] this sense of regret, of guilt, of shame; and all of this goes with this time of year when people don't behave with their money. And this is supposed to be a joyous season."

More than half a million people have taken Ramsey's course known as "Financial Peace University," which teaches biblical principles to beat debt and build wealth. The course has recently been updated, and he is also set to release a version for church youth groups.