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18 December 2009

Avoid a Christmas debt hangover -

Everyone knows that Christmas can be an expensive time of year but it is important that people are able to enjoy Christmas without getting into financial difficulties.

The Citizens Advice Bureaux (CAB) have put together a handy leaflet with tips to help people manage their money at Christmas. You can download a copy online here or read their tips below.

The Citizens Advice service is currently using a £10m funding boost from the government to extend its opening hours and ensure even more people can benefit from receiving free, independent and impartial advice. This has meant over 225,000 additional people have been able to receive advice since February 2009.

If you are facing financial problems the Northfield Citizens Advice Bureaux may be able to offer you help and advice. You can contact them on 08444 77 1010 or click here for more information.

Top tips to avoid a debt hangover

  • Plan early for Christmas
    Be realistic and budget accordingly. Work out how much you are going to spend on each person – and stick to it. Manage expectations as to what you or Santa can give.
  • Don’t forget the everyday bill
    Remember that rent, the mortgage, utility bills, food bills and other existing debts still have to be paid – and the consequences can be severe if they’re not. Even though it’s Christmas, get your priorities right.
  • Don’t bank on an overdraft
    If you do need more money, don’t just run up an overdraft without talking to your bank first – it will work out much more expensive.
  • Keep things simple
    If you can afford to pay for your goods outright by cash, cheque, or debit card, don’t be persuaded to take out extended credit agreements unless they really do work out cheaper.
  • Shop around
    Try as many different places as possible to find the best price. Buy what you want and not what other people say you need. Be wary of extended warranties; the cost of a repair could be less than the cost of the warranty.
  • Buy safe to be safe
    Whatever the deal, whatever the temptation, don’t buy from unauthorised traders and don’t borrow from unauthorised lenders. The initial savings and convenience may prove to be a false economy.
  • Read the small print
    Check for hidden extras in any credit agreement. Work out the total amount payable.     Ensure that the monthly instalments are within your budget before signing. Interest free credit can seem attractive, but if you don’t pay on time, or miss a payment, you could have to pay a lot more.
  • Do your own credit checks
    If you are going to use a credit card, shop around and compare terms. Some cards charge high interest rates, but provide interest free periods or discounts. Budget for all these costs and put the payment dates in your diary.
  • Be organised
    There’s a lot to remember at Christmas. If you’ve borrowed money don’t forget that it won’t be long before you have to make a payment. Make sure you pay on time, even if it is only the minimum, or you will be faced with additional charges.
  • Start planning and saving for next Christmas
    Once Christmas is over, it’s worth looking at what you did well and what you didn’t. Learn from your mistakes and start planning how you will do things differently next year. This might also be a good time to start saving for next Christmas.