Avoid getting into debt at Christmas

Christmas puts a big strain on the family budget and there is enormous pressure to buy lots of presents and food. So, it’s important to remember that enjoying a great Christmas doesn’t have to mean spending lots of money. There are lots of ways to enjoy Christmas on a budget, without breaking the bank. No one wants to start the new year drowning in debt so follow our tips and plan ahead to avoid debt this festive season whilst still enjoying a very merry Christmas.

• The relentless Christmas TV adverts promise you a perfect day in return for spending a fortune on presents, food and festive treats. But remember it’s just one day and although your kids may be excited to unwrap presents on Christmas morning you still need to pay your bills, pay rent and put food on the table for the other 364 days of the year. Take time to think before you make purchases. Ask yourself; Do I really need this? Could I find a cheaper option? How will I pay for it?
• A good way to ensure you don’t overspend this Christmas is to set yourself a budget and stick to it. Make a list of everything you want to buy including presents, food, cards, days out, new clothes or homeware. You can use the Budget Planner to help you manage your finances and show where you might be overspending. If your predicted costs add up to more money than you have, you’ll need to cut back your wish list and economize.
• Remember, you’re not the only person struggling with the cost of Christmas. After a tough year which has seen lots of people on furlough or even lose their jobs, everyone will be looking for ways to make savings this year. Chat to your friends and family and suggest setting a limit on presents, only buying presents for the children, or just sharing small, token gifts or handmade presents.
• Save on expensive Christmas cards and postage and email out free e-cards instead (which are also more environmentally friendly too!)
• The Christmas grocery shop can be really expensive shop so plan ahead and only buy what you realistically need. Switch to supermarket own-brand products and, if you’re celebrating with friends and family, ask others to contribute items to help spread the cost.
• If you can afford to pay for goods outright don’t be persuaded to take out credit unless it really does work out cheaper. Be wary about ‘Buy now, pay later’ offers. Are you sure you’ll have the money then? Don’t be tempted to borrow from a loan shark – check out our article in this month’s issue about the dangers of loan sharks.

If you’re worried about debt don’t bury your head in the sand. Talk to our Welfare Rights & Money Advice team who can help you find a way forward and avoid starting the New Year in debt.