How to Avoid a Christmas £££££ Hangover

Christmas can be a great time to relax and enjoy some downtime; but for some, Christmas can create a New Year Debt Hangover that lingers for far longer than the left-over Turkey.

 

1/ Make a list.  Yes, it sounds boring but planning ahead and setting yourself a budget can work.

2/ Amongst your family and friends, set a limit of how much you will spend on each other.

Most people prefer to receive a small gift and know it has not caused you financial hardship rather than lots of big gifts that soon end up in landfill!

3/ Think about “Secret Santa” – many people do this for work colleagues but why not for friends and family?

4/ Consider “second hand”, there may be bargains in your local charity shop or online. Children can soon grow out of toys/gifts so why spend top dollar!  How many sheds are full of bikes that are hardly ever ridden?

5/ Can you use your supermarket vouchers or reward points to reduce the cost of the big Xmas shop?

6/ Remember Xmas only last a few days. Don’t buy perishable food that you will not eat & throw away.

And finally:-

7/ Only spend if you have the cash to pay but if you need to borrow money this Christmas:-

Make sure you can repay within the next 12 months.  Christmas only comes once a year but it comes every year – so you don’t want to go into Xmas 2019 with debt round your neck from Xmas 2018.

 

Borrowing money on your credit card can seem easy – but if you are only making minimum repayments it can take you many years to repay.

Make sure you understand how much in total you will repay and make sure you can afford the repayments – there can be a big difference in how much you pay back.

 

For example: –Borrowing £500 from the Provident and repaying over 52 weeks would cost £936. A similar loan with the Nottingham Credit Union would save you £339!!

(source: www.providentpersonalcredit.com, 25/10/2018)

If you buy an iPad costing £368.31 from Brighthouse, you can pay £6.50 per week which sounds like a great deal. However you would be making payments for 104 weeks and would pay back £676 in total. (source: www.brighthouse.co.uk, 25/10/2018)

If you had a loan from your local Credit Union and paid back at £6.50 per week, you would repay the loan in 73 weeks and would save £206!!

 

If you are not already member of Nottingham Credit Union you can apply here: https://www.nottinghamcu.co.uk/ or visit the Branch on Maid Marian Way, Nottingham or Clumber Street, Mansfield.

A Credit Union is a community owned bank, run on a not for profit basis.

 

 

Categories: BLOG and LATEST NEWS.

5 Top Money Saving Tips for Christmas

Although we are heading towards the end of October, now is definitely the time to start thinking about Christmas and planning ahead. We’ve got 5 top money saving tips for Christmas that we think might help as you start the gallop towards the festive season.

In the summer we talked about saving for Christmas. If you have, that’s great, you’ll have a pot to fall back on when you reach December and if you’ve not, don’t panic, there is still time!

Save Regularly

Whether you get money coming in each week or month, transfer it out of your current account into an another account. A Nottingham Credit Union share (savings) account works very well for this purpose and because you are a payroll member, you can have the deduction taken straight from your salary, taking away the hassle of having to transfer it yourself. We also know that having the savings separate to your usual bank account means you are less likely to dip into them.

Although we only have November and December remaining, set this up as regular savings going forward – that way you’ll have started a good savings pot for next year.

Budget

It’s an obvious one but when you are under pressure from your kids to buy the latest gadgets, budgets can often go out of the window. Most people know what they have coming in between now and Christmas. Don’t forget you will also need to factor in food and entertaining over the Christmas period. From statistics published last year a family will spend an average of £800 on Christmas.

You can come up with a budget by working out what you will spend on food, entertaining and presents and then looking at what income you have coming in. Be realistic. There is no point in budgeting to spend £500 and blowing that by spending £1,000. Additionally, planning the perfect Christmas might not be what you can afford either! Unfortunately bills don’t stop because Christmas is coming and so be sure to cover all your usual expenses before buying presents.  

Borrow Responsibly

Although the message this time of year is usually one of drinking responsibly, we encourage you to borrow responsibly. Although there is a temptation to put Christmas on a credit card and indeed statistics show that almost a third of shoppers last year did this, there is an inevitable price to pay in doing this.

It takes minutes to buy with a credit card but months and years to pay it back. Is the expensive priced gadget worth that to you? We all want to please our loved ones with the perfect presents, but debt takes away people’s happiness as well as their spare income.

Last year there was an increase of 60% on the number of people who called the National Debtline after Christmas with worries about overspending.

We aren’t trying to burst the festive bubble, but we don’t want you to become another debt statistic – borrow responsibly.

As you know, Nottingham Credit Union offer affordable loans for payroll members where the repayments are deducted directly from your salary. There is something to suit everyone’s budget and so if you do need to borrow, you can do so sensibly.

Share!

Christmas is all about family and friends so why not share the load! When you have friends or family over, rather than being responsible for all the food and entertainment, ask others to contribute. People are more than happy to bring dessert or go halves on the food and drink bill.

Giving isn’t always expensive

Be creative. Your kids may not thank you for home-made gifts but others will. Bake Christmas cakes and other goodies or if you are creative, put together gift baskets. You can also find plenty of festive gifts for £5-£10 that don’t cost the earth but that people would appreciate. Shop around and don’t be afraid to spend less. The gift is in the giving remember

 

 

Categories: BLOG.