Don’t over spend this Christmas

There is a lot of pressure to spend money during Christmas and the consumer will end up spending a lot more money during the Christmas period. At Smart Debt Advisors we advise consumers the best way to prepare for the Christmas is to start saving in January. Many consumers tend to spend money from their credit cards and take out personal loans and most time they are unable to make repayments. Saving early will ensure that you are not spending money from your credit cards or taking our huge personal loans, just so that you can impress your friends and family.


Start saving in January for Christmas

Start by putting small amounts of money away for Christmas from January. Make sure you do a budget in January for Christmas. This can be a rough budget or based on the amount of money in spent last Christmas. This will give you some indication on how much money you should put away for Christmas every month. We also recommend that you save a little extra, so you can also prepare for January. Since January is when the kids go back to school and you soon will need money for school uniform, stationery, fees etc. Should you have surplus money from your savings for the Christmas period, we recommend saving that amount for the next Christmas or the January expenses. We further recommend cutting your Christmas budget by 7% every year.


Take now pay later

This is one of the most dangerous credit types offered by retail stores. We advise that you stay away from these type of offers. During the December period many retailers tend to punt this type of credit and at the time of the application it seems to be a good idea, when repayments start, you then realise you have made a huge decision. If you intend on making a purchase always save and pay cash for an item rather than taking out further credit.


Ways to save money during the Christmas period

We have some decorative way you can save this Christmas;

  1. Don’t buy on credit.
  2. Set a budget and stick to it.
  3. Always compare prices before deciding, some retailers even match the price and offer you a further discount just because you found the item cheap at some other place.
  4. Use your rewards, nowadays almost every retailer offers loyalty programs. Make use of the points you have earned through the year.
  5. Make your own decorations and gifts instead of buying.
  6. Do not buy too much of food, it may go to waste.
  7. Buy non-perishable items and clothes in advance. Retailers may inflate prices during the Christmas rush.
  8. Re-gift, there is no shame is giving an unwanted gift to someone else. This will save you some money.