Tips For Avoiding Debt In 2023

When it comes to Christmas, finances can get tight, especially if you have a large family. For some people, Christmas can be difficult to the point where it could get them into financial trouble. If you know you always struggle every year for Christmas, we advise you to start saving straight after the Christmas period. Each month, put money away to make buying Christmas gifts much easier. Let’s look at how you can avoid Christmas debt this year.

Create A Budget

One of the best tips that we can give you during this period is to give yourself a budget. Commit to a cost that you won’t go over for your friends and family. However, you can’t forget all the necessities that you need to pay for. That includes your bills, food for you and your family and fuel for your vehicle. All of these things must be paid before you start to put money away for Christmas.

Start Saving As Early As Possible

Another tip for those who struggle around Christmas is to start saving as early as possible. If you know you struggle with the Christmas period, you should start saving the moment Christmas is over. It will reduce the amount of stress you have closer to the Christmas period, without having to worry about spending large sums of money on Christmas during December.

Don’t Be Afraid To Buy Christmas Presents Too Early

There is nothing wrong with buying Christmas presents way before winter. If you see something that you know a family member or friend would like and it is on sale then buy it, especially if you have the money.

Buying Christmas presents early on will reduce stress closer to the Christmas period. Plus, you will be saving money because you are spending less on it.

Keep Track Of What You Are Spending

From the minute you receive your wage, you need to keep track of what you are spending. This includes your food bills, subscriptions, presents, mortgage/rent payments and anything else you will be spending money on. All of these payments can add up, leaving you with little money at the end of it.

What Happens If You Do Get Into Christmas

As we are in a cost-of-living crisis, many people will be struggling this time round for Christmas. There will be many people who will struggle during this festive period. For those who fall into debt, they should not worry too much. There are many ways to deal with debt such as speaking to an IVA advisor who could help reduce the amount of debt you are paying off. Even if you are in debt before Christmas, an IVA calculator would help calculate new monthly payments, and reduce the debt you have to pay, making some room for your Christmas expenditure.

Christmas debt is something many people struggle with after the festive period. It is a lot more common than you may think. Speak to a financial adviser to get some tips on how to pay off your debt, without having to worry about getting into more debt.