- 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.
- 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.
- 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.
- 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.
- Get advice early as problems can get bigger and more expensive.
Top Tips to avoid Christmas Debt
