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.
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.