Money Watch – Personal Finance Blog

With less than a week to go before Christmas, it’s likely that many of our budgets have already been squeezed by our seasonal spending.

photo credit: alancleaver_2000

Covering the cost of the festive season isn’t always easy, and with so many expenses to take into account – from gifts and decorations to food and drink – it can be tempting to borrow a bit of extra cash to give our budget a boost.

However, there are some ways you could do your final bits of Christmas shopping without overspending and going into debt.

Let’s look at some helpful tips for staying debt-free this December.

Tips for a debt-free Christmas

You could avoid getting into debt this Christmas by:

• Only taking the cash you can afford to spend when you go out shopping: leave your debit/credit cards at home and you won’t be tempted to spend more than you know you can comfortably afford.
• Taking advantage of Christmas offers and promotions at the supermarket: ‘BOGOF’ and ‘2-4-1’deals could really save you money at the checkout.
• Setting yourself a realistic price limit for gifts: buying presents for family, friends and work colleagues can easily become a big expense. However, making (and sticking to) a budget for all your gifts means you shouldn’t end up spending more than you can afford – and could help you organise your shopping list a bit better too.
• Shopping at discount stores: you could find gifts, decorations, stocking-fillers, cutlery and food & drink there at knockdown prices.
• Looking online for presents. Many online shops offer Christmas deals and discounts – and you could find some serious bargains! What’s more, you may even be able to take advantage of free postage & packaging and gift wrapping at certain stores. Just make sure it’ll arrive on time before you order anything.

Are you already repaying debts?

Christmas can be a particularly tight time for those people already repaying debts. It’s important that anyone currently repaying debts makes sure that they budget for their monthly repayments – on top of all their other living costs – and take steps to repay everything they owe sooner rather than later. In general, the sooner you repay a debt, the less interest you’ll pay (although some debts can’t be repaid earlier than agreed, or will charge a fee if they are).

If you’re having problems keeping on top of your monthly debt repayments, it’s important to get professional advice. You may be able to arrange a new repayment programme – such as a debt management plan – that could allow you to repay your debts at an affordable pace. Alternatively, there may be another debt approach suitable for you – so you can repay your debts realistically and get your finances back into shape.