Christmas is for most people, a joyous occasion that we spend with our families and friends. But 2020 may be a little different to what we’re used to.
With over 1.6 million people currently out of work, and the numbers expected to rise to 2.6 million by mid-2021, it’s important we don’t overstretch ourselves and cause long term consequences, such as a debt spiral.
Borrowing to cover the cost of Christmas
Needing to keep up with the times and an increase in pressure to gift the latest gadgets can often leave families struggling to afford the cost of Christmas which then leaves them struggling with their debts in the New Year. With the average family spend increasing by over £800 in December compared to other months, it’s time to consider whether using credit to pay for gifts & the overall cost of Christmas is really worth the debt burden it leaves behind.
A survey found that those who intend to use credit to cover Christmas will take an average of 7 and a half months to pay it back; so how we can avoid getting into debt or creating a financial fiasco for one day of the year? Avoid using credit – sounds simple!
If you’ve been used to using credit in previous years, it can be difficult to break the cycle, but we all have to start somewhere! If you’re currently paying off debts from previous Christmas spends, try to get it paid off as early in the year as you can, that way, you’ll be able to start saving for next Christmas ahead, reducing the need for credit and breaking the cycle of being in debt.
Christmas Top Tips