How people should start thinking about Christmas shopping now and avoid the pain of debt in the new year - Mark Fleet

Even worse, it could push people desperate for money into the hands of loan sharks or high interest payday lenders.

So, can households already struggling with their finances cope with the additional cost of Christmas and still have a festive period to remember without having to turn to unscrupulous lenders? And if so, how?

The good news is that the answer is 'yes'.

By beginning to save for Christmas now - or even for Christmas 2024 - you can spread the cost of purchases over a longer period of time, reducing the impact on your monthly budget and ensuring your household can still have a great time. Leeds Credit Union's Christmas Club accounts allow members to save as much or as little as they like all year and draw down savings from the start of November. Unlike traditional savings accounts, they don't allow early withdrawals, meaning you're not tempted to dip into your Christmas savings until you need them.

This also means any money saved is guaranteed to be available in the run-up to Christmas as it can't be withdrawn early or used for direct debits or standing orders, so there's no chance of your savings decreasing without you realising.

Christam savings accounts help you budget for the holiday season throughout the year. By making regular contributions, you can set a realistic budget and avoid the last-minute scramble to cover costs, reducing stress and the anxiety associated with holiday overspending. Because these accounts often have restrictions on withdrawals until a specific time, they prohibit impulsive spending on non-essential purchases. This enforced discipline helps build a consistent saving routine that can be put into practice for years to come.

It's easy to get carried away and overspend when shopping for Christmas, leaving you with financial regrets once the season is over. A Christmas savings account acts as a safeguard against overspending by limiting access to the funds, encouraging you to stick to your budget and prioritise the essentials.

Retailers often offer attractive discounts and deals in advance of the holiday season, so having a Christmas fund available means you're perfectly positioned to take advantage of them. And because you'll have the funds available to make purchases during sales and promotions, you'll be able to stretch your holiday budget even further.

Entering the new year without the burden of holiday debt is a wonderful feeling. Christmas savings accounts empower you to start the year with a clean financial slate, setting a positive tone for your financial goals and resolutions.

Anyone concerned about the cost of Christmas or their financial wellbeing in general should contact their local credit union, who may be able to provide them with access to a range of affordable loans and savings accounts.

Mark Fleet is CEO of financial services provider Leeds Credit Union.