As others have said - eliminate gifts to EVERYONE that you can get away with this year. It sounds like you've had a rough year, and yes, people will understand if you need to change your Christmas gift giving.
I would also mention to the families that you had to re-think your Christmas, just so they aren't caught by surprise.
And - try to start some new traditions with your family. Maybe go out near Christmas to take in the Christmas lights. Maybe you could all prepare a fabulous Christmas breakfast, or a great Christmas dinner., and serve it "special", maybe by candlelight. But make it a "team effort" with your kids, maybe let each child pick their favorite thing to add to the meal. You might end up with hot dogs and mac'n cheese, but so what! Maybe do a nice late-night candlelight service on Christmas Eve.
A couple of our traditions are - we eat Chinese (sometimes take-out, sometimes at the restaurant) on Christmas Eve. Depends on what time we go to church on Christmas Eve. We open up our presents after church. Santa still comes "to those that believe" even, though DD is 16.
We do that on Christmas morning. And - DD and I usually stay in our Jammies until about 5 pm on Christmas day. Plus - Christmas Day is a HUGE movie day in our house. And - we have a fire in the fireplace ALL day, so the family room is toasty.
Don't feel that everything has to be related to gifts. Some of the best Christmases are based on the quality time spent as a family, as well as the memories. Can your family volunteer at a local organization that needs help?
You've not mentioned how old your kiddos are. That might help with some recommendations from other dis'ers.
Good Luck to you!
I would also mention to the families that you had to re-think your Christmas, just so they aren't caught by surprise.
And - try to start some new traditions with your family. Maybe go out near Christmas to take in the Christmas lights. Maybe you could all prepare a fabulous Christmas breakfast, or a great Christmas dinner., and serve it "special", maybe by candlelight. But make it a "team effort" with your kids, maybe let each child pick their favorite thing to add to the meal. You might end up with hot dogs and mac'n cheese, but so what! Maybe do a nice late-night candlelight service on Christmas Eve.
A couple of our traditions are - we eat Chinese (sometimes take-out, sometimes at the restaurant) on Christmas Eve. Depends on what time we go to church on Christmas Eve. We open up our presents after church. Santa still comes "to those that believe" even, though DD is 16.

Don't feel that everything has to be related to gifts. Some of the best Christmases are based on the quality time spent as a family, as well as the memories. Can your family volunteer at a local organization that needs help?
You've not mentioned how old your kiddos are. That might help with some recommendations from other dis'ers.
Good Luck to you!