Avoid Christmas Debt
Money saving tips to avoid Christmas debt
Christmas is a time when we allow ourselves to indulge, and quite frankly for many of us who have worked hard all year, we deserve it.
However more and more of us are relying on credit cards to get us through Christmas, and then struggle to get payments together to pay off the debt. But Christmas does not need to be a time to allow us ourselves to get into debt.
What can you afford to spend at Christmas
Before you go mad on spending and the cost gets out of control, sit down and work out an affordable budget. A surprising amount of people will simply throw caution to the wind during the festive season, opting for luxury goods as gifts, and for food and drink. However if you are unable to afford to do this at any other time of the year, don’t allow yourself to rack up debt just because it is Christmas.
Take a look here at this helpful Budget Planner
Unnecessary Christmas Presents
Of course it is lovely to give presents to people, but in our ever increasing span of friends and work colleagues, it is important to be realistic. Don’t feel obliged to simply give a Christmas present, really think about what you are giving, to whom you are giving it, and why you are giving it. Talk to friends and family, you will be surprised just how many people are also concerned with the price of Christmas. Make a pact with people to not to buy presents, how many of us would rather a friend or family member not pay out for a gift and save the money - many more than you may think.
Don’t borrow to pay for Christmas
If you can avoid it, try not to get into a slippery slope of debt by borrowing money to pay for Christmas. If you are having to borrow, think very carefully about repayments, be sensible, what can you afford to pay back each month. Will you be able to clear the debt comfortably before the next Christmas? Indulgence for one day, then 11 months of stress of paying off debt… is it really worth it?
In an ideal world, plan ahead, set aside a cupboard in your house and make a list of people you need to buy for. Then begin in January purchasing gifts when they are at their cheapest, pop them in the cupboard and remove the person from your list. When you get to November you will be stress free, and lets face it, feeling rather smug!
A Christmas List
If you are buying during the Christmas period, make a list and stick to it! This will help any necessary and expensive purchases.
Be sensible this Christmas on your spending, getting into bad credit will effect your borrowing in the future, and your life!