How to Have a Debt Free Christmas

Christmas is supposed to be the time of year when we all get together as a family, exchange gifts, eat too much and generally have a jolly old time.

But for many of us, it is quite the opposite. It means a whole load of pressure to spend money we don’t have on gifts and festivities.

For instance, your kids want the latest (and expensive) toys, your partner is desperate for a brand new smart phone and you have no idea what to get your parents, but it has to be something good because they look after the kids to let you work and they always spend a lot on you.

And then there’s your siblings and their families! No wonder stress levels rise dramatically at Christmas.

There are things you can do to take the financial stress out of the festive season and the first thing is talk. Yes, that’s right talk. Get everyone together to discuss how much you are going to spend on each other. You might agree to only buy the adults token gifts worth £10. Maybe you could agree with your siblings that you will stop buying each other presents altogether and only buy the kids. If you have a big family, why not stop buying for them altogether? Trust me your sister will be glad you aren’t going to buy her son a large toy to add to the already massive collection of plastic in his bedroom.

And talk to your kids. I know you want to buy them everything they want, but it’s not always possible. If they are older, explain to them you can only afford to spend so much. If they are small and still believe in Santa, tell them they can only choose one big present from the Big Man (you can buy them smaller, less expensive gifts to bulk out their present quota). Kids don’t need a huge amount of toys on Christmas Day to have a good Christmas. In my experience, if there are too many toys kids get overwhelmed and end up playing with the cheapest toy anyway.

It’s too late now, but next year, make sure you plan ahead for all birthdays and Christmas. Work out how much money you can afford to put away and start saving from January if you can. Even a fiver or tenner a month will help take the sting out of Christmas and other family events next year.

Before buying your gifts, make sure that before you start splashing out for presents, you have covered all the important bills such as your rent or mortgage, utility bills, food and other things. You do not want to be made homeless or have your electricity cut off because you felt you had to buy your mum an expensive bottle of perfume (and she won’t want you to either).

Decide early on how much you can afford to spend on gifts and festive food and drink, and stick to it. Write up a list of present recipients and have a look around the internet to see what you may want to buy them. If you decide on one thing, shop around to get the best bargains in gifts, food and drink.

Talking of eating and drinking, why not agree with the family that you will each take a dish to the house in which the festivities are being hosted? That takes the sting out of one family having to pay for the whole thing and it can be fun. For instance, the host can provide the turkey and trimmings whilst you provide the soup course and another person attending the dinner could get the pudding.

When it comes to alcohol, you don’t need to spend £££s on spirits, wines and other drinks. Many shops have great own brand spirits and mixers that are a lot cheaper than branded. Same goes for food too: buy own brand frozen veg, crisps and nuts, chocolate and puddings. Trust me they won’t be able to tell the difference.

And finally…

Please don’t be suckered in by shops offering you 10% off your first purchase if you take their credit card. These cards often have high interest rates which will negate any savings you make. If you can, use cash to buy your gifts instore then you won’t be tempted to overspend.

In fact, try not to take out credit at all, especially if you are already in debt or struggling to pay your bills. If you need to take out credit, make sure you read the small print and understand how much it’s actually going to cost you, you’d be surprised how much interest you’ll be paying. Compare different forms of credit.

If you do find yourself in trouble with debt this year, don’t hide or panic, take a deep breath and deal with it. Seek advice from your local debt advice charity if you need to. You got this!