The best ways to pay for holiday gifts ahead of Black Friday

What you buy this holiday season is just as important as how you buy it.

In fact, the payment method you choose at checkout can go a long way toward helping you stick to a budget, save money and stay out of debt.

“The credit card is the gold standard in terms of rewards and buyers protections, but the interest rates are a huge drawback,” said Ted Rossman, senior industry analyst at Bankrate and Creditcards.com. “The biggest thing I would worry about is debt.“

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The rising cost of living is straining household budgets just as the peak shopping season kicks into high gear. That can make paying with credit more appealing, but there may be other options that fit your needs even better.

“It comes back to knowing yourself,” Rossman said.

From credit cards to cash, installment buying and payment apps, here’s a breakdown of some of the best ways to pay this holiday.

“If you have multiple cards in your wallet, use the one that will give you the most value in return on the purchases you’re making,” said Elly Szymanski, assistant vice president of credit card products at Navy Federal Credit Union. “For instance, a card that allows you to redeem rewards on your everyday spend for cash back, gift cards or merchandise may be your best bet for holiday shopping.” (CNBC’s Select has a full roundup of the best cards for holiday shopping.)

If you’ve already banked rewards, this is a good time to cash them in, Szymanski added. “With many households looking to spend less this holiday season, one of the best ways to save is take advantage of the points and rewards you’ve accumulated over the course of the year by using your credit card.”

However, credit card interest rates are at record highs and only heading higher as the Federal Reserve hikes rates in an effort to curb record high inflation. With APRs close 20% or even 30% on some retail cards, racking up any credit card debt will come at a high cost. (In debt? Take these steps to help trim high-interest account balances.)

“Credit cards should only be used if you can pay them in full each month,” cautioned Chelsie Moore, director of wealth management solutions at Country Financial. “Utilize them as if the cash is coming directly out of your checking account.

“So, if you see yourself spend beyond your budget, you may need to switch to utilizing cash or a debit card.”

Fewer consumers use cash at all these days but there…