Top tips for avoiding debt at Christmas

With Christmas on the horizon this time of year brings increased pressure to spend, as well as increased costs from winter fuel bills. We would like to share these Top Tips for Avoiding Debt compiled by Pennysmart CIC, to help remove some of the stress so that you can enjoy the festive season when it arrives:

1. Set a Budget: Plan and stick to a realistic budget covering everything (not just the gifts).
2. Prioritize Essentials: Don’t forget you will still need to cover all the basics even though you have additional Christmas related spends.
3. Save Early: Encourage saving small amounts throughout the year.
4. Shop Sales: Take advantage of discounts and sales events.
5. DIY Gifts: Create meaningful, handmade gifts, or give out your own ‘promise vouchers’ pledging help/time to support loved ones instead.
6. Limit Gifts: Implement gift limits such as £5 each, or Secret Santa exchanges.
7. Affordable Activities: Focus on low-cost or free activities instead of buying ‘stuff’.
8. Start a Gift Cupboard: Buy small gifts throughout the year, from supermarket ‘middle-isle’ offers or re-purpose unwanted gifts (be careful with that one).
9. Avoid High-Interest Credit: Steer clear of high-interest lending, check your budget to make sure you have enough money to cover repayments checkout your local Credit Union here Find Your Credit Union - search to find credit unions near you
10. Loan Alternatives: Interest free Budgeting Advance if you receive certain benefits.

Pennysmart CIC is a social business that aims to help those in financial crisis to stabilise their finances, deal with problem debt and improve their financial resilience. You can find out more about their work here: www.pennysmart.org.uk .