Quote from Fergus McCarthy on November 18, 2024, 3:23 pm

With Christmas fast approaching, financial experts are encouraging UK households to budget early. The average household plans to spend £593.90 this year, so preparation is key to avoiding January debt.

Fiona Peake, personal finance expert at Ocean Finance, says, “December is an expensive month, especially with rising living costs. Planning now helps families avoid last-minute spending and benefit from early deals.”

Set your Christmas budget and stick to it

Start by setting a realistic Christmas budget that won’t impact essentials like bills or food. Allocate specific amounts for gifts, food, travel, and decorations. Clear categories make it easier to track spending and stay in control.

Consider credit cards wisely in your Christmas budget

Credit cards can help spread costs, but they require careful use. Many providers offer 0% APR on purchases for a limited period. Applying now ensures the card arrives in time for holiday shopping. Always have a repayment plan to avoid interest charges.

Shop early and look for Black Friday deals

Don’t wait until December to start your shopping. Take advantage of Black Friday and Cyber Monday offers to save money and avoid panic-buying closer to Christmas. Early shopping can help reduce costs and stress.

Earn cashback and rewards

Use credit cards offering rewards or cashback on purchases. These perks can help stretch your Christmas budget. However, pay off balances promptly to avoid interest that cancels out the benefits.

Use purchase protection

Credit cards provide added security for purchases over £100 under Section 75 of the Consumer Credit Act. This protection covers faulty items or issues if a retailer goes out of business. Use this option wisely for larger purchases and always read the terms.

Plan for unexpected expenses in your Christmas budget

Unforeseen costs, such as extra travel or last-minute gifts, often arise during the holidays. Keep part of your budget flexible or set aside emergency funds. If you rely on credit for these expenses, ensure you have a repayment strategy.

Get ahead and save

Starting your Christmas planning early ensures a smoother festive season. Visit Ocean Finance for expert advice and tips to manage your money effectively this holiday season.

By preparing now, you’ll enjoy a stress-free Christmas and a debt-free January.

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