Avoid a financial hangover... Don’t put Christmas on credit 🎅

A third of Britons are borrowing money to pay for presents this Christmas, while one in five are taking on credit to pay for food, according to new research by the Money Advice Trust.

So follow our top tips to minimise the impact of this potentially ruinous time of year.

1. Get organised. Make a list of exactly who you’re buying what for, so you can tweak your budget where necessary. £20 per teacher at your kid’s school? Is that really necessary? Seeing your plans written down will help you make good decisions.

2. Do you really need to top-up your current account from your savings account? Is that what your loved ones would really want you to do, just to get them an extravagant gift? Would you want them to do that for you?

3. Research, research, research. Checked for online deals, and maybe next time consider buying gifts throughout the year, when you see a good discount.

4. Timing is important: pre-sales usually start the week before Christmas, so prepare your list, and go for that last-minute shopping trip.

5. It’s maybe a good time to check your overdraft and credit card details… we’ve said it before and we’ll say it again. Knowledge is power! Make sure you have a full understanding of your current finances.

6. Have you thought about giving cash or vouchers? They can be used from boxing day, and in truth many recipients would prefer to choose their own gift.

7. Do you keep track of your spending? Look at what you’ve spent already - don’t be in denial about any of your festive spending, or you’ll pay for it (literally) later.

8. Don’t forget the “small” expenses that can add up so quickly: cards, ribbon, wrapping paper etc.

Photo by erin walker on Unsplash.