The official Christmas countdown chat starts on November 1st after Halloween, but in less than nine weeks until the big day, many people will be interested in having a head start in planning their festive budget, especially if their finances are a little tight this year due to the coronavirus pandemic.
The best advice to take if you are worried about the cost of Christmas and cannot afford to buy gifts for family, friends, loved ones, or coworkers is not to do so.
No one will think less of you if you just say you won’t be giving presents this year – some may even follow suit.
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This time of year is also when more and more people are using credit cards to pay for gifts, but without good financial management some can stay in debt well into the new year.
In fact, data released after last Christmas showed that over a third (34%) of UK adults take their credit card debt into the New Year.
Vanquis reports that they typically see an increase in new 0% credit card applications for balance transfers every January as people rush to move their credit card debt to lower interest rate deals.
However, all of this can be avoided if you are already thinking about how to finance your Christmas party.
Planning, budgeting, and organizing are keys to enjoying the celebrations with loved ones without the stress and worry of growing debt.
The good news is that a recent survey of Vanquis customers found that the lockdown allowed 29 percent of people to reset their priorities and spend less before Christmas.
And almost a quarter (23%) are confident that they can manage Christmas because of the lockdown savings they have accumulated.
Whatever your circumstances, Vanquis Customer Director Thomas Allder shared his five simple tips for planning your finances for Christmas regardless of your budget.
Financial aid available in Scotland
Budget for a Merry Christmas
Not many people want to think of Christmas this early, but it will pay off. Think about how much money you can set aside now and in the coming weeks for gifts, food, and social plans – only commit yourself to what you can realistically afford over the Christmas period.
Take your time shopping
Don’t leave your Christmas shopping to the last minute. Panic buying is stressful and no one wants to be “that person” who happens to be giving away gifts of what was left on the shelves on Christmas Eve.
Sooner rather than later, make a list of who you want to buy for and give gift ideas for each person.
Planning ahead allows you to look for the best deals, stagger your purchases, and means you’re less likely to forget someone. Remember that Black Friday and Cyber Monday have some brilliant deals.
Use credit wisely
Used wisely, a Christmas loan can be a lifeline and also help build your credit score.
But if used irresponsibly, it can escalate into long-standing debt and greater burdens. Be reasonable about what you can afford and how long it will take to pay off.
Buy larger items early and see if you can pay off some of them before Christmas. This means you will start the new year on a positive note with less debt hanging over you. Consider whether the use of credit has any long-term implications for your financial wellbeing.
Planning ahead for the organization of celebrations
If you’re hosting family or friends on Christmas Day, or planning a party ahead of time, there are ways you can host without breaking the bank at the last minute.
Think about your recipes, decorations, and games ahead of time, then keep an eye out for deals in stores.
There are many things you can buy long before the holiday season that will last well.
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Beware of festive fraud
Unfortunately, scams are just as common at Christmas as any other time of the year. Fraudsters use a variety of methods to trick people into giving up money, banking information, and personal information.
From pretending to work for charities, to fake delivery notices, to offering “Too good to be true” offers via email.
Don’t click any suspicious links, say no to unexpected requests for your personal information, and always check reviews before buying.
If you fall victim to a scam, it can really hurt your careful financial planning this Christmas.
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