Published On: Fri, Dec 15th, 2017

Staying Out Of Debt This Christmas

Staying Out Of Debt This Christmas

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With the average family spending over a grand on Christmas, it’s easy to see how you could easily fall into the trap of debt at this time of year. Debt is a horrible thing that can debilitate a person, let alone a family. And a small debt can often lead to a larger one due to interest rates, so it can be incredibly hard to get out of that hole once you’re in it. Which is why you need to take measures to make sure that it doesn’t happen at all, some of which can actually help to improve your credit score as you go!

Saving


You’ve heard it once, and you’ll hear it again – but saving really is the best way to head off debt before it can rear its ugly head. Get yourself a high-interest savings account and set it aside purely for Christmas. Life does get in the way, so they may be times where you have to dip in a little but avoid that as much as possible. Twelve months is a decent amount of time to save enough for Christmas, and for your money to earn a little while sitting in that account.

Smart

Be smart with your money. You may have saved up a nice bundle, but you can’t then go and splurge it on a handful of gifts and a bauble or two. Budget your Christmas money. Set an amount per person for gifts and keep it even as much as possible. And if the gift you choose is a little bit cheaper, then you are not obligated to go and spend that last little bit. Remember to budget for little things like wrapping paper and stamps for cards. And don’t put yourself under pressure to get the biggest and the best – it really is the thought that counts.

 

Spending

There are a couple of ways you can spend your money – and one of them is to get a credit card. It sounds strange seeing as this blog is about not getting into debt. However, if you have all, or most, of the money saved up for Christmas, then paying off your credit card can be a great option, as you can pay it back straight away and improve your credit score rather than ruining it. Check out the best cards from this year at best.creditcard to make an informed decision. But remember that if you don’t know for certain that you can pay it back, then don’t do it.

Shopping

Now you can get shopping. Shop for Christmas throughout the year – and begin in the sales after the previous Christmas. That way you can get all your decorations sorted for next year. Shopping through the year allows you to take advantage of the seasonal sales, plus people don’t just want gifts suitable for winter. If they are big on going to the beach, then pick up some beach wear in the summer sales. You can also think about doing Secret Santa with people. This works best if you’re part of a large group of friends, with work, and even with family. If you have a lot of siblings, then use a generator like Elfster to draw out names.

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