Dec 3, 2015 - 6:18 PM
Hi ketaki1191, and welcome to MySwissAlps!
1. Top places depend on what you're interested in, varying from skiing (if you can ski) to museums, to city trips, scenic trains, etc. Can you provide a bit more information? For ideas, please click "What to do" in the top menu.
2. If you avoid the real popular winter sport resorts like Zermatt and St. Moritz, there should be affordable accommodation in most towns. Having said that, you are traveling in the busiest time of the year so prices may reflect that. Staying in a valley will in general be cheaper than in the mountains. See our "Where to sleep" section for ideas please. Once you have selected towns, feel free to ask for accommodation advice in the accommodation forum.
Regarding traveling by car: December is not the best season for a "road trip" in the sense of exploring Alpine pass roads. Many will be closed, but perhaps that's not what you have in mind. December can be pretty wintery, so your car must be equipped appropriately and you should know how to drive on slippery roads and on mountain roads, if you plan to go there. In general the train system is the best and safest way to explore Switzerland, even more so in winter.
Does this help to get you started?