"In some instances, we are doing like a Secret Santa, where instead of getting 20 gifts, we'll just give a bigger gift to one person," said one shopper as to what she is doing with office gifts.

"The worst thing you want to do is like accumulate credit card debt and then like have it linger for the rest of the year," said another.

"Things are more expensive and I don't have the money," said a third.

A sentiment shared by many, according to a new Consumer Reports survey, which found 76 percent of shoppers are tightening their belts this holiday season.

"That could be in terms of gifts, it could be terms of decorations and holiday entertaining, but also holiday travel and charitable giving," says Mandy Walker of Consumer Reports. "The early results we've seen from retailers told us that things are slow."

To attract more customers, Walker says many retailers will be slashing prices all the way up to the end of the holiday season. Meaning, if you're late to the game, you could win big.

"It probably makes sense to wait as long as you can to do your holiday shopping because you'll probably get the best deals," says Walker. "But you can't be picky about a model number or a color. Some people said they are even going to be waiting after the holidays to do their shopping."

But before you hit the stores, Walker says you should do your homework to maximize their spending power – everything from cutting coupons to comparing prices. And if you rather stay home, there are plenty of deals to be had online, and you'll find many retailers waiving shipping costs, even taxes.

But whether you're planning to shop on-line or stand in line, Walker says make a budget and, more importantly, stick to it.

"In our poll, we found that 12-million people told us they still haven't paid off their debts from last year," says Walker.

If you plan on giving gift cards, be sure you explain the terms of use to the recipient. There might be expiration dates and fees. And you might want to encourage the recipient to use the card sooner than later. In this uncertain climate, you never know which business is next in line to go under.