It might seem like it’s far too early to start thinking and talking about Christmas, but it’s closer than you might think… for those paid monthly at the end of each month, there are now only two paydays before Christmas!
Avoid Christmas on Credit
YouGov polling by StepChange Debt Charity in December 2024 revealed that 8% of respondents intended to use credit to cover Christmas expenses, with 38% of these using Buy Now Pay Later financing. 47% of those borrowing money last Christmas reported that it would take them more than 6 months to repay the credit they use.
There can be a lot of pressure around Christmas to spend, spend, and spend some more, but it’s important to keep the bigger picture in mind… Christmas is not worth getting into debt for. It can be tricky navigating gift giving when you have little money spare, but doing things like Secret Santa, sticking to a budget, and having open and honest conversations with your friends and family about money on the run-up to Christmas can make a big difference.
Set a Budget and Stick to it
It can be easy to feel pressure from advertisements, social media, and those around us to ‘keep up’ with other people’s lifestyles. This pressure can lead to us spending more than we can afford at Christmas, but one single day in a year is not worth getting into debt for!
Setting a budget can help you stay in control of your Christmas spending. Your budget should consider the cost of presents, food, decorations, Christmas parties, and anything else that you tend to spend more money on around the festive season.
In terms of gift giving, you could also make a gift list where you write down the names of those you want to buy presents for and set a maximum amount to spend on each person to avoid overspending.
With 2 paydays before Christmas, now is a good time to create a budget before it gets too late…
Use Sales, But Be Wary
Keep an eye out for any special deals or offers on items you want to buy for the festive season but be wary of being enticed to buy things you didn’t want or need in the first place. You are only saving money if you were going to buy that item anyway. Creating a list of things you would like to buy can help you avoid being drawn into any unnecessary spending.
Homemade Gifts
Making homemade gifts is a great way of saving some money at Christmas. Not only are homemade gifts budget friendly, but it’s a way of giving your loved ones something that is thoughtful and personal. It’s the thought that counts, not the price tag.
Remember that Christmas is not worth going into debt for and to talk to those around you if you’re struggling financially. There are also debt charities and organisations which can offer you support, such as National Debtline, Debt Advice Foundation, and Citizens Advice.