Tips to avoid a Christmas debt hangover
As Christmas approaches, local charity Exeter Citizens Advice Bureau is helping people avoid a Christmas debt hangover by sharing their top ten tips for keeping festive finances in check.
Exeter Citizens Advice Bureau Chief Executive Steve Barriball, said:
“We all want to have the best possible Christmas. It's important to be savvy when shopping and to be aware of how spending pans out.”
The top tips are:
1. Plan early 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!
2. Don’t forget the everyday bills 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. Read the small print Check for hidden extras in any credit agreement. Work out the total amount payable. Ensure that the monthly payments 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.
8. 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.
9. 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.
10. 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.
If you shop on-line, consider signing up to the online fundraising portal TheGivingMachine™ that enables internet shoppers to help the local community at no extra cost to themselves. Simply go to www.thegivingmachine.co.uk then join and select Exeter Citizens Advice Bureau as one of your beneficiaries. You can then shop via TheGivingMachine™ and support Exeter CAB.
If you are experiencing money problems, you can get advice from the Citizens Advice website www.adviceguide.org.uk or by telephoning Exeter Citizens Advice Bureau on 03444 111 444.
The CAB volunteers and staff will be taking a well earned break over the Christmas period. The Bureau will be closed from Wednesday 24th December 2014, and will re-open on Monday 5 January 2015.
