The festive season is nearly upon us and with Black Friday deals and festive activities, it’s tempting to spread the cost of Christmas with buy now pay later and credit cards. But it’s wise to be wary, overspending on buy now pay later and credit cards can be a slippery slope to more debt. If you want to avoid adding more to your debts this Christmas, follow our top tips.
Be in Control of Your Budget
Write down all of your plans, and gifts you need to buy and budget to make sure you won’t get caught out paying for more stuff. Our budgeting guide is a great place to start, check to see if you can reduce your expenses or increase your income to have spare money.
Avoid Christmas on The Credit Card
Last year, 79% of people who came to us for help with their finances had credit card debt. It’s the largest type of debt people struggle with and it can take months or years to pay off, leaving people in a spiral of debt. If you do have a credit card and find it hard to control your spending, it might be a good idea to cut it up. If you use your credit card for emergencies, it’s time to prioritise saving for an emergency fund, so you have money saved for any unexpected expenses. It’ll give you financial peace of mind.
Avoid Buy Now, Pay Later
26.4 million people have used buy now pay later this year, a 36% increase since 2023. Firms such as Klarna, Clearpay and PayPal pay in three allow customers to spread the cost across three interest-free instalments. It’s a popular option for people who want to spread the cost without adding to a credit card. Most credit cards add interest if you don’t pay it off in full at the end of the month, but buy now pay later allows you to spread the cost interest-free. In new rules laid out by the government, buy now pay later firms will be subject to making sure lending is affordable in 2026.
Get Free, Confidential, No-Obligation Debt Advice
Tackle your debt before Christmas so you can go into 2025 with a plan for your money and debts.
Free*, confidential, no-obligation debt advice is always available at Angel Advance. Contact us to speak to one of our friendly and knowledgeable debt advisers who can give you advice and support on how to deal with debt, in order to help you decide on the best debt solution for you.
If all you need is some debt advice, there is no risk to receiving this as a standalone solution, as it won’t affect your credit score. The Angel Advance Online Debt Advice (ODA) tool is available to use at any time, day or night.
Our free and easy-to-use online tool will help you weigh up the debt solutions available to you and give you the best recommendations for your unique situation on-screen, instantly.
*Our advice is free, but if you sign up for a debt solution, a fee will apply for some solutions.
