Citizens Advice Christmas Top Tips

12 December 2011

Citizens Advice has issued its ten top tips to help people stay in the black this Christmas:

Plan for Christmas
Be realistic and budget accordingly. Work out how much you are going to spend on each person - and stick to it. Manage expectations as to what you or Santa can give.

Don't forget the everyday bills
Remember that rent, the mortgage, utility bills, food bills and other existing debts still have to be paid - and the consequences can be severe if they are not. Even though it is Christmas, ensure your priorities are right.

Don't bank on an overdraft
If you do need more money, do not just run up an overdraft without talking to your bank first - it will work out much more expensive.

Keep things simple
If you can afford to pay for your goods outright by cash, cheque, or debit card, do not be persuaded to take out extended credit agreements unless they really do work out cheaper.

Shop around
Try as many different places as possible to find the best price. Buy what you want and not what other people say you need. Be wary of extended warranties; the cost of a repair could be less than the cost of the warranty.

Buy safe to be safe
Whatever the deal, whatever the temptation, don't buy from unauthorised traders and do not borrow from unauthorised lenders. The initial savings and convenience may prove to be a false economy.

Read the small print
Check for hidden extras in any credit agreement and workout the total amount payable. Ensure that the monthly instalments are within your budget before signing. Interest free credit can seem attractive, but if you do not pay on time, or miss a payment, you could have to pay a lot more.

Do your own credit checks
If you are going to use a credit card, shop around and compare terms. Some cards charge high interest rates, but provide interest free periods or discounts. Budget for all these costs and put the payment dates in your diary.

Be organised
There is a lot to remember at Christmas. If you have borrowed money do not forget that it will not be long before you have to make a payment. Make sure you pay on time, even if it is only the minimum, or you will be faced with additional charges.

Start planning and saving for next Christmas
Once Christmas is over, it's worth looking at what you did well and what you didn't. Learn from your mistakes and start planning how you will do things differently next year. This might also be a good time to start saving for next Christmas.

Anyone dealing with concerns relating to debt should contact DAWN Advice through the Northumberland Single Telephone Advice Line for free and impartial advice on 0844 4111 309 as soon as possible.