Simple steps to avoiding getting deep into debt this Christmas - Vikki Brownridge
Christmas comes but once a year, as the saying goes. But for too many households, paying it off continues well into the following one, or even further. New polling for StepChange by YouGov reveals that this year will be no exception.
More than one in four adults in Britain say they will struggle to afford Christmas, and one in 12 expect to resort to borrowing to afford the cost.
So how can you protect yourself against the risk of incurring expensive interest costs and potentially even experiencing debt problems as a result of this seasonal cost pressure?
At StepChange, it always makes us a bit sad every year to see how many people log onto our website on Christmas Day. While of course there are lots of people who don’t celebrate Christmas, we know that there are others who are already worrying about their finances as soon as it happens. So now is the time to think and to be realistic about what you can afford, and what won’t put you in a tight spot when January comes around.
We know offers and special deals in the lead up to Christmas and the New Year can be plentiful, as well as very tempting. It may sound obvious, but a good mantra to stand by is a deal is only a deal if you were planning to buy it in the first place. It’s also important to remind ourselves that showing our love for people can also be done in other ways – not every gift has to come with an unaffordable price tag attached, or risk debt problems for you or your loved ones.
Examples of gifts that may be appreciated just as much are those where we give our time or energy. Offering to babysit for an evening so an exhausted parent can have a night out might be a gift that’s appreciated more than anything else. Or home-made gifts like preserves or Christmas sweets can cut the cost of the gift, but show by your effort how much you care.
For children, days out don’t have to involve expensive trips – a walk around the locality to gawp at everyone’s Christmas lights may be just as much fun. And arts and crafts activities using repurposed materials are both enjoyable and eco-friendly at this time of year. Let your creativity loose, and you might be surprised at how much more satisfying it turns out to be than trawling the shops or the internet.
Don’t forget too that, even if you do end up overspending, the sooner you get on top of getting your finances back on track the less difficult it will be.
In January, we tend to see a big uptick in the number of new clients seeking help. A combination of the cost of Christmas and New Year’s resolutions to sort out tricky finances are the drivers for this.
You can get help at any time of day or night by using our online debt advice service, so if the first step feels daunting and you don’t want to talk to an advisor, or if you simply prefer to do things online as most of our clients do, there’s no need to wait for our phone lines to be open.
On that note, there’s no need to wait until after Christmas to get some help and advice with your finances, either.
If you’re already feeling the financial pressure, you can take the first step towards untangling your financial situation as soon as you like, perhaps even right now. It might even help you to have a happier Christmas.
Vikki Brownridge is chief executive of StepChange Debt Charity, based in Leeds.