As Christmas spending looms, financial experts are urging households to plan now to avoid a financially difficult January, a charity has warned.
The pressure is mounting, with charity Barnardo’s revealing that some parents will skip meals so their children can have a Christmas dinner with all the trimmings. Debt advice charity StepChange is now offering tips to everyone to prevent festive spending from leading to a financially painful new year.
Christmas is a time when we want to enjoy ourselves and make things special for the people we care most about,
said Vikki Brownridge, chief executive of StepChange. But it can also put a lot of pressure on household budgets, and it is key to take steps to get ahead of any January financial blues.
The best way to avoid a difficult January, the agency says, is to make a realistic plan before the spending begins. Small decisions now can make a big difference later. Its tips include:
- Budget for Christmas in full. That means not just presents, but also food and drink, travel, parties, postage, decorations and other festive extras.
- Spread the cost. Don’t rely solely on your December paypacket. Make a shopping list before Black Friday on 27 November—only a discount if you were going to buy it anyway.
- Book your train journey now. Advance tickets, if available, are cheaper.
- Set spending limits. Place a cap on the bill for Christmas socialising, and have a quiet conversation with family and friends about present spending.
- Stocktake before the big food shop. Check your cupboards, fridge and freezer, then plan meals around existing food. Make a list and compare prices.
- Think twice. Can you afford what you’re buying? If it’s on credit, can you afford the repayments? And do you really need it?
If you are concerned about Christmas leaving you in debt, it is best to seek advice before things become unmanageable. The independent MoneyHelper website has a guide to finding free debt advice near you. It also offers tools to check if you are receiving all the benefits and grants you are entitled to, and tips on how to draw up a budget.
And it is really important to watch out for scams at this time of year. Fraudsters will take any opportunity to catch you out, especially when you are under pressure financially.
