I thought we might finish the holiday season under budget this year. Realistically we will be $200 over budget. We can deal with that. Especially since January is generally more low key.

It can be a challenge repaying the holiday bills at the same time as your paycheck decreases (those pesky EI and CPP deductions are back) and you may have budget resolutions.

Here are some tips to repaying 2010 holiday bills and setting yourself up for 2011.

• Take care of any returns or exchanges.
• Calculate the amount you owe over and above your regular monthly budget*.
• Divide this amount by 4 (4 months) and decide how you are going to find the funds – a) earn more or b) reduce spending in other areas.
• Review what you spent over the holiday season and make a note for 2011.
• Add up the 2011 budget, divide by 12 and start setting aside a monthly sum.

* If your bills total $1,500 and you typically spend $700 on your cards for monthly expenditures such as food, clothes, household and gas – you have $800 to repay over the next 4 months = $200 per month.

It will feel financially tight over the next few months but managing it sooner rather than later means less interest paid to credit cards and better preparation for 2011.