Credit card debt peaks at Christmas time for obvious reasons and January can be a painful time as we try to deal with our festive debt. Short of cutting up our credit cards, there is no sure way to fully control our spending. Nevertheless, a few practical steps taken now will minimize the pain.
A good start is to list the people for whom we would like to buy presents such as children, partner, siblings, parents, grandparents, siblings, friends and colleagues. Next step is to decide how much we want to spend in each case and how much the total spending on gifts should be. If the total is too high, cut it back. Review the list again and see if we can reduce spending in some cases and consider if anyone can be dropped off the list.
Try and save well and regularly well in advance of Christmas so that we can pay cash rather than use expensive credit. Economies are available if we can avoid expenditure on things like Christmas cards and decorations which can perhaps be made at home with our children’s help.
Before going out to the high street, have a look at the internet to see what bargains are available this year. Consider postponing expensive purchases until the January sales. Avoid last minute panic buying when prices are high and few discounts are available. See what we spent last year by looking at our old statements and credit card bills. Above all be sensible and avoid the January blues by keeping spending within our capacity to repay the debts we incur.