During the festive season, it can be tempting to forget about credit cards and other debts. However, you can avoid a debt hangover in the new year by taking some simple steps to manage your money and spend wisely.

In this post we’ll share our tips on how to manage your spending over Christmas.

1. Plan early to avoid overspending

It can be tempting to overspend during the festive season, especially this year, when celebrations may look a little different from usual. However, one of the most effective ways to avoid a debt hangover in the New Year is to stick to your budget at Christmastime. Whether you’re buying gifts, food, or decorations, set amounts that you are comfortable with and won’t leave you short. 

If you do find yourself in need of extra over Christmastime, speak to your bank before dipping into an overdraft in order to avoid charges.

2. Don’t forget everyday bills

In the flurry of seasonal shopping and activities, it can be easy to forget that regular expenses and bills will still need to be paid. From rent or mortgage payments to groceries and energy bills, it’s important to include regular outgoings in your budget for December. It can be helpful to prioritise these expenses before setting budgets for gifts, Christmas food, and extras.

Getting behind on your regular bill payments could result in stress in the New Year. If you need help and advice on paying your bills, please get in touch. 

3. Be credit-aware

When buying high-ticket items, you may be offered the option to pay via a credit agreement. If you can afford to pay outright with cash or a debit card, this is usually the most cost-effective option. If you are entering into a credit agreement, read the small print, terms and conditions before signing up so you’re not surprised with extra charges.

If you’re using a credit card to pay for Christmas expenses, shop around and compare terms for the best deal. Before you sign up, check the terms and conditions, costs, and repayment dates. You could mark these in your calendar and budget for any interest or charges to ensure you make the repayments in time.

4. Steer clear of scams

When shopping for Christmas gifts, many people like to compare prices across different online and offline retailers. Unfortunately, there are scams and fakes on the market and so it’s important to know how to avoid these. Stick to reputable websites and retailers - check reviews from other consumers and look up business details on Companies House. Before you buy, read the terms and conditions to make sure you’re protected if something goes wrong. 

If you’re worried you’ve been scammed while shopping online, you can find information on what to do here. 

5. Act early to deal with debt

It might be the last thing we want to think about while celebrating Christmas, but part of good money management is budgeting for debt repayments. By sticking to payment schedules and addressing any debt issues that come up, you can save yourself a headache once the celebrations are over.

If you need help with debt management, please get in touch with us.

For more information on managing your money this winter, including support with debt, visit our debt advice pages.