For many people across the UK, Christmas is the most expensive time of year, and it can be challenging to get your money back on track. Even in the best of circumstances, managing finances is difficult. If you’re beginning the year with large credit card debts to pay off or overdraft fees, you’re not the only one. Here are some tips to help you get back on track financially after Christmas.

Update your budget

As a result of the cost of living crisis, most of us aware that this year’s household expenses are anticipated to rise. In order to keep your spending in check, it’s crucial that you update your previous budget to account for any potential changes. Small price increases add up and must be taken into account, from higher gym membership costs to higher shopping expenses. Reviewing your budgets at the start of the year will help you determine your monthly disposable income more precisely. Worried about the cost of living crisis? Receive help here.

Set reasonable goals

If you wish to pay off your debts this year or save a sum of money, setting these goals at the start of the year is ideal. To ensure you achieve them, it’s important that they are reasonable and realistic. After the festive season has come to an end, take time to consider where your monthly income is going. Examine your finances closely and keep track of what expenses your income must cover and what you should do with any additional income. Don’t forget to seek help and support along the way if needed. Use our budgeting tool to help you understand what you’re earning and spending, along with where you might be able to cut costs.

Organise your repayments.

Following the festive period expenses, the New Year is the best time to review your debts, including credit card debt and small loans, so that they don’t linger and cause worry all year long. Start by listing all of your current loans, their interest rates, and repayment terms. If there are no 0% offers available, focus on paying off the debts with the highest APRs first, especially credit card debt. You can find help and advice with debt here.

Explore cheaper alternatives

The start of a new year is the ideal time to analyse your monthly spending, including your energy bills, weekly grocery expenses, and other general outlays. It’s time to open up some comparison websites to locate less expensive options and find cheaper costs and better deals on your monthly expenditures.

Job opportunities

If you’re struggling to cover your expenses, it may be worth exploring higher-paid job opportunities, along with any incentives that they offer. This doesn’t always mean finding a new job, remember that it is always worthwhile to request a pay rise!

However, if there are no possibilities of receiving a pay rise, it might be worthwhile to look for alternative job opportunities. Since businesses frequently revise their budgets and may have delayed recruiting new employees during the festive season, January and February are often excellent times to explore new job positions.

Maximise your income

For some extra income to help you get your finances back on track, you can sell any items that you no longer need or have any use out of. This can go into your savings, or go towards helping you pay off any expensive.

Plan ahead

After evaluating your budget, you’re already in the planning mode, but why stop there? It is time well spent to prepare for events that you know will cost you money this year. You’ll be less likely to have to use credit to pay for gifts if you have money set aside for them.

It’s also never too early to start planning for next Christmas, especially if it involves your finances. Planning ahead allows you to set aside money to help you pay for the expenses. This will put less financial pressure on you when the time comes around. You can start by making small monthly transfers into a savings account can soon accumulate up to a large amount over the course of the year. This will prevent you from using a credit card for some of your Christmas expenditures, and going into debt.

If you’re worried about your finances or struggling to keep up with debt repayments, you’re not alone. There are various options available to help you if you fall into debt. Get help with debt and discover our debt solutions here at Citizens Advice Cardiff & Vale. We provide free, confidential and impartial information and advice to residents throughout the whole of Wales. For jargon free help and advice, please visit us at Citizens Advice or Contact Us here.