Christmas can be a very expensive time of year and there is a lot of pressure to purchase a huge amount of food and presents. While the festive season is a time of celebration, Christmas spending can cause financial pressure and difficulties for millions of individuals across the UK. It is always best to avoid getting into debt for Christmas, therefore we present to you our top tips to stay out of debt this festive season.

Plan your budget and stick to it

To create a Christmas budget, you should review your bank statements and compile a list of your monthly expenses. This will display where your money is going and show where you may save money to spend on Christmas. The most important thing is that you pay all your essential outgoings and your bills. The money that is left over after these costs are subtracted is surplus income, which you can utilise as you like over the festive period. Use our budgeting tool to help you understand what you’re earning, spending and where you might be able to cut costs.

Buy early/start early with your Christmas shopping

Many stores offer great prices on gifts in the months leading up to Christmas, but by December, most of these are gone. If the ideal Christmas present is on sale in earlier on in the year and you have the money to buy it, don’t wait! Making the most of these discounts can help you save a significant amount of money and reduce your December spending if you prepare beforehand.

Find ways to cut costs

You can save a lot of money by using price comparison websites to evaluate the prices for a variety of household expenses, including utilities, car insurance, and home insurance. You can save a great amount of money a year just by switching gas and electricity providers, for instance. You can then set aside every penny you have saved for Christmas!

Save money early

This will allow you more financial freedom over the festive season, allowing you to do all the things you want without financial worry or difficulty. Therefore, it is best to start saving as soon as possible by looking at your budget in the months running up to Christmas, and putting some expenses aside.

Save your receipts

Always keep your receipts as you might need to return something that is damaged or simply unwanted and unused. Make sure to check the products refund window, so that you can return the item and receive your refund. Asking for a gift receipt is also another wise decision.

Set expectations

When making promises about what you can afford for Christmas, set expectations. This is important for children because they may not understand the concept money, they can make endless lists, and change their minds constantly in the weeks leading up to Christmas. Do not feel so inclined to buy everything they ask for if you cannot afford it!

Shop around for food and drink

Make sure to browse around because your trip to the shop for Christmas food and drink may end up being the most expensive one of the year. Some supermarket own brands receive excellent alternatives and cost a small portion of what leading brands do.

Pay off debt as quickly as you can

If you do find yourself accumulating debt, plan to pay it off as quickly as you can. Here at Citizens Advice, there is much help available when dealing with debt. Receive help and support to work out how much money you owe and which debts you should pay back first. Get help with debt and money here.

It is crucial to keep in mind that having wonderful festive season doesn’t require spending a fortune. There are numerous ways to celebrate Christmas on a tight budget without going falling into debt. Nobody wants to start the New Year buried in debt, use these tips and make a plan to stay out of debt this festive season!

If you are worried about falling into debt this Christmas, you are 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.