Page 8 - Wythenshawe Life Newsletter – Winter 2020

8
How To Avoid A Financial Hangover At Christmas’
page
Christmas Finance www.wchg.org.uk
There is a lot of pressure face leading up to the Christmas period. There are tempting offers and pressure from friends, family and the media to have the “perfect” Christmas.
It’s not surprising that people get carried away and
a lot of people turn to borrowing at Christmas. This year is harder than most with many people having a reduced income due to redundancy or reduced hours due to Coronavirus. If we aren’t careful the effects of overspending can stay with us long after Christmas is over and for some it can have a long-term impact on financial stability.
To enjoy a financially stress-free Christmas try following these simple rules and you can avoid a financial hangover:
Don’t stop paying bills
It might be the season of goodwill but unfortunately your rent, council tax and utility bills still have to be paid. If you get paid early in December you should consider paying these priority bills straight away, so you know what you have left is what you have to spend on your Christmas shopping.
Plan Ahead
Set aside a small amount each month or week to pay for things at Christmas. Local credit unions, such as Manchester or South Manchester Credit Unions, often have savings clubs especially for this purpose. Or
you could try the Government Help to Save Scheme. Christmas dinner can be expensive. To keep costs under control it’s crucial to plan ahead and shop around. Start buying non-perishable food items earlier in the month when they are on
offer in the supermarket.
Set a budget and stick to it
It’s easy to give in to pressure and overspend but having a clear budget and shopping around for the best deals for the items you are looking for will mean that you won’t be struggling in the Spring. This applies to presents as well as the food and drink consumed over the festive period. To save money you could agree within your family or friendship groups to just buy for the children.
Don’t be tempted to borrow
It can seem easy to borrow money to pay for Christmas costs, but you have to consider whether you can afford to pay it back. If you do take out credit, make sure to check the terms and conditions and do a household budget to make sure the repayments won’t leave you struggling. Try your local Credit Union. Door Step Lenders and Pay Day Loans are expensive ways to borrow and best avoided. Contact the Illegal
Money Lending Team if you are worried about a loan shark.
By sticking to these you will be able to enjoy Christmas and avoid starting the New Year with financial worries that could last a further 12 months.
If you need budgeting advice contact our Financial Inclusion Team on 0300 111 0000 or via the App. For debt advice contact
National Debtline.