After all the presents are unwrapped, all the eggnog is slurped and all the turkey leftovers are nibbled away this holiday season, Bob Mullins says a depressive cloud of looming bank and credit card statements will descend on many Central Oregonians.

Mullins, a certified money management volunteer at Bends Consumer Credit Counseling Services, says holiday debt is an annual problem that is most problematic during this time of heightened consumerism. The best advice is to create a holiday budget early and stick to it, but few do.

Mullins says he sees a 40 percent increase in clients visiting his office on Bends west side once the credit payments start rolling in by March. But by then, most people are doing damage control some still paying off the previous years holiday debt when they should have sought counseling in October, before the major spending sprees.

Most people do not have any idea what theyre doing with money, says Mullins, an avid coupon-clipper and expert on how to receive cash-back bonuses from credit cards and freebies from retailers.

The holidays dont have to cost what people spend, he said. Even people who budget overspend. They walk into a store, invariably get what they want at a good price, then feel like they can spend more with the money theyve saved.

The result of this the more you save, the more you spend irony: Consumers burst their budget bubble in a heartbeat.

Bend residents have the potential to be big spenders, according to Echelon Marketings new Retail Spending Potential Index. With an index of 40, Bend outranks larger cities like New Orleans, San Antonio and Tucson in holiday spending this year. But Bend only ranks as the 195th-largest market in the United States, according to the study, which measured the citys wealth, income, age, existence of retail stores and other indicators of spending potential.

In the country, the average consumer will spend almost $800 this holiday season, according to the National Retail Federation, a retail trade group. Most of those will use some sort of plastic payment method, especially since nearly 50 percent of shoppers are expected to buy gifts online, the federation said.

Although debit and check cards will remain the consistent favorite of shoppers with 39.1 percent of consumers using them, one in three people will use credit cards, according to the federations 2006 Holiday Consumer Intentions and Actions Survey.

Conversely, fewer people will use good old cash 24.3 percent, down from 28.5 percent last year.

Only 6.2 percent of shoppers will write checks at the register, the survey found.

Of those relying on credit cards, Mullins is willing to bet that most arent paying their full credit card balance every month, which means they are not financially mature enough to own a credit card.

Mullins said he owns roughly 30 credit cards, regularly uses only a few and pays each off monthly.

Bend resident Danielle Zepess says she tries not to let the holidays break the bank. She plans her shopping ahead and takes advantage of retail sales. This year, shell also be doing a lot of online shopping.

Were flying to Orlando for (the holidays), Zepess said while grabbing a bite in downtown Bend last week. So Im going to order my presents online and have them shipped down there.

Buying online keeps Zepess from packing burdensome presents for air travel and many online shopping sites offer holiday promotions and free shipping.

From crayons to jingle bells

Mullins co-worker, Linda Young, keeps a plastic bag in her drawer thats stuffed with snipped-up credit cards. The certified credit counselor says she never makes her clients cut up their cards, but many do or ask her to do it.

Anything to make the process easier for them, Young says.

Sadly, many credit card users cant tell they are choking on debt while spending, Mullins says. Some can handle it, he added, if they stick to a realistic budget.

Most people know theyre overspending, Mullins said, they just believe that they can handle it.

The problem starts months before Turkey Day, he said.

Back-to-school shopping can cost families $600 per child, Mullins said. Not long after that, Halloween comes with its often pricey costumes, goodies and decorations. Then Thanksgiving and December holidays a double-whammy of seemingly costly holiday traditions.

Redmond resident Pam Seeder says she had to learn the hard way to manage her debt.

Using credit cards is just so easy, Seeder said while visiting Bends west side last week. But credit cards also easily made her overspend. This year, however, Seeder says she started shopping early and is only paying with cash.

Only about 6 percent of U.S. consumers have most of their holiday shopping done by now, according to the retail federation. The majority, 68.5 percent, have only completed 10 percent or less of their holiday shopping.

That means many will rush to by at the last minute, which credit counselors agree can lead to a hefty bill thats even harder to pay off.

But warm and fuzzy holiday cheer can be cheap even free if shoppers are smart about it, Young said. She offers a list of inexpensive ways to celebrate the season:

Check out Christmas videos at the library, have hot chocolate and cookies and string popcorn garlands for the tree or outside for wild birds.

Spend an evening reading Christmas stories using the library saves again.

Adopt a grandparent call a nursing home or a senior services center and ask for someone who doesnt have family or visitors.

Organize friends for Christmas caroling.

Host a gift-wrapping party and encourage everyone to bring cookies, candy and recipes to share.

The night the tree is decorated, camp out around it in sleeping bags and read The Night Before Christmas and other Christmas stories.

The bottom line, both Mullins and Young agree, is to make a budget for what you can afford to spend and do not stray from it.

Credit cards are not the enemy, Mullins warns, if used correctly. Too many times consumers are living beyond their means and use credit cards to support a nonsustainable lifestyle.

You are really over the edge if youre just making it, he said. If your spending is equal to what youre making, then youve already fallen off the cliff you just havent hit any rocks yet.