How to avoid a financial hangover into the new year
Christmas can be an expensive time of year and for many it is fraught with financial hardship. Given the restrictions in place last year, consumers could be tempted to go ‘all out’ this festive season. But according to the personal finance experts at money. co.uk, there has never been a more urgent time for people to review their spending habits.
“With the countdown to Christmas now on and the postlockdown spending splurge in full swing, now is the time to take back control of your finances,” said James Andrews, senior personal finance expert at money.co.uk site.
So how can we stay on topof our finances? James advises drawing up a budget for yourself.
“Either using a spreadsheet or an online budget calculator, work out where your money goes each month,” he said. “If you have more money going out than coming in each month, try switching a few services to cheaper alternatives. If you have leftover cash from each month, put this in a savings account for when you do need it.”
Cancelling direct debits for unused services and considering whether you really need a particular service will help.
“Switching your everyday providers is also essential,” said James. “When it comes to your gas and electricity bills, you could save a lot of money by switching to a cheaper tariff. You may also want to switch your bank or savings account by comparing the different interest rates on offer. Moving any existing debt to a 0 per cent balance transfer credit card can also see you save on charges.
“Ultimately, setting yourself a goal is the key to staying on top of your finances. Whether your intention is to stay out of your overdraft, pay off your credit card or save for a house deposit, having a financial target in your head will really give you that mentality to save.”
Tips to avoid getting into debt this Christmas from the team at www.onlinemoneyadvisor.co.uk include re-using decorations from previous years, and getting your children involved with making them.
Starting shopping early to spread the cost, asking people to bring a bottle or plate to a party, Secret Santa for a friendship group and making the most of discounts can also help.
Finally, avoid trying to plan the ‘perfect’ Christmas: establish what you can afford and create your Christmas around your set budget.