Typically the most financially demanding month of the year and with outstanding personal debt set at £1.451 trillion at the end of December last year, a correlation is expected between Christmas spending and financial concerns.
However with the average family spending between £530 and £682 on gifts, decorations, food and drink, and with almost a quarter of parents admitting they are planning to spend more on children's presents this year than they did last, it is clear that tough economic times are not deterring British Christmas spirit.
With this in mind, financial support network, Peachy, is encouraging people to look at taking simple steps to manage their finances over Christmas so as to avoid the headache of consolidating in the New Year.
Three Simple Steps for Managing your Christmas Finances
1. Shop Online - not only does shopping online allow you to very easily compare prices from numerous providers but online traders often offer greater discounts than those available on the high street as they have reduced costs of operating. You will also be able to save money on the hidden costs of shopping, such as transportation and parking, which all mounts up at this time of year.
2. Recycle Gifts - every year we receive gifts that we actually get no use out of, however there may be someone you know who would really appreciate receiving that gift this year. If you feel uncomfortable passing an old gift on to somebody else you could always put it up for sale online and use the money to bolster your Christmas budget.
3. Plan Your Budget - make sure you know how much you have available to spend before you embark on your Christmas shopping. Draw up a list of all the people you have to buy for, the sort of items you are looking for and a budget for how much you would be looking to spend on each person. By planning carefully you can make sure that you don’t over spend and that you make the most of the offers that shops bring in during December to boost their sales.
For some, however, simple money saving steps may not be enough and advisors in the finance industry have acknowledged that inevitably there is an increased, short term demand for extra money at this time of year.
Financial expert Kristjan Novitski from Peachy said: “At the end of the year spending is bound to raise a lot and people are in a need for extra cash. Although it is not sensible to borrow huge amounts of money with long term obligations or roll-overs we acknowledge that for some, seeking support may seem like the only option.
“Whilst we would advise anyone taking out any loan to consider it carefully, choosing options where you decide at the beginning when exactly you pay the money back and in how many instalments are always favourable. Peachy strives to implement this approach, and work alongside people to help them manage their finances flexibly and plan their future costs,” she said.
For more information you can visit www.peachy.co.uk.
For more helpful tips on how to spend wisely and save this Christmas, click here