Right now, the big news is the economy. And with people worried about how the economy might fare in the coming weeks (even with his stimulus plan, Barack Obama says that the recession will get worse before it gets better), holiday spending is being cut. I know that my holiday spending budget is smaller this year than it was last year.

A CNN poll backs this up. According to the poll, 67% of Americans plan to spend less this holiday season. It’s the main attempt to cut back and save money during the recession. Additionally, there is evidence that cash is supplanting the credit card Christmas as well. There are concerns about getting into further debt at a time when the economy is so slow, so people are shunning the plastic.

There are plenty of frugal holiday gift ideas for others that can be employed to help you cut costs this holiday season. It is more important that you remain financially solvent than impress people with your holiday gift giving ability. Remember – it’s always a good idea to try to get your high interest balances onto a low balance transfer credit card. One last thought…if you have a rebate credit card – you could give away your rewards to your family members as a Christmas gift. Give them a plane ticket with your airline miles reward/rebate!!! Discover also give rebates in the form of gift certificates – you can use these as gifts…keep it simple…keep it cheap!