Our partners at Citizens Advice Mid Mercia (CAMM) have shared their top tips to help you keep your finances in check and avoid unnecessary debt, while still enjoying the festive season.
1. Set a Realistic Budget
Before you start shopping, take a step back and think about how much you can afford to spend. Create a budget that covers gifts, food, decorations, and any other expenses. Make sure to include a bit of room for unexpected costs, but don’t stretch yourself too thin. Keep in mind your regular bills and savings goals and stick to your budget as best you can. Take a look at our resources to help you budget here.
2. Plan Your Gift Shopping
Gift shopping can quickly become overwhelming, especially if you’re buying for many people. Instead of impulse buying, make a list of who you want to buy for and set a price limit for each gift. You might also want to consider giving more thoughtful, budget-friendly gifts such as homemade items, experiences, or spending time together rather than expensive presents.
3. Use Cash or Debit Cards
It’s easy to overspend with credit cards, especially when the excitement of the Christmas kicks in. If possible, use cash or a debit card to keep your spending under control. Using cash helps you physically see how much you’re spending, while debit cards allow you to track your purchases easily through banking apps.
4. Take Advantage of Sales and Discounts
Look for Christmas sales, promotions, and discounts to get the most value for your money. Many stores offer deals in the lead-up to Christmas, so take advantage of these opportunities to buy items at a reduced price. However, always be careful not to buy more than you need just because something is on sale. A sale is only a good deal if you’re actually saving money on something you were already planning to buy.
5. Shop Early and Avoid Last-Minute Stress
If you can, start your shopping early to spread the cost of Christmas over a few months. This can make a big difference in how much you spend in the lead-up to Christmas. Waiting until the last minute can lead to rushed decisions and, potentially, overspending as you try to buy everything in a short period.
6. Be Mindful of Food and Drink
Food and drink are a big part of the Christmas celebrations, but they can also be one of the biggest expenses. Plan your meals in advance and buy only what you need. Don’t overstock just because it’s Christmas — there are always opportunities to buy items in bulk after Christmas if needed. Also, consider cutting back on pricey treats and looking for alternatives that are just as festive but more budget-friendly.
7. Don’t Forget Your Bills
While the Christmas season is all about gifts and celebrations, your regular bills won’t stop coming. Make sure to budget for council tax, rent or mortgage payments, utilities, insurance, and any other ongoing costs. If you’re struggling to make ends meet, please get in touch and speak with us straight away – there’s lots of support we can offer.
8. Avoid Unnecessary Debt
One of the biggest pitfalls during Christmas is using credit cards or loans to cover festive expenses. While this may seem like an easy solution, it can lead to financial problems down the road. If you are already in debt, try not to add more during the festive period. Consider cutting back on expensive gifts or scaling down your celebrations to make sure you stay within your means.
9. Plan for the New Year
As the new year approaches, it’s a good time to think about your finances moving forward. Set yourself a financial goal, whether that’s paying off debt, saving for a holiday, or just building up an emergency fund. Planning for the future can help you make smarter decisions today and reduce stress in the months ahead.
10. Get Support if You Need
It If you’re finding it hard to manage your money or are already struggling with debt, don’t hesitate to reach out for support. CAMM offer free, confidential advice on managing debt, budgeting, and dealing with financial difficulties. You can also get in touch with our Better Days team for information, advice and guidance.
There’s no shame in asking for help and taking action now can help you avoid more serious problems in the future. To get support with your finances and debt, please complete the below referral form.
