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How to avoid the post-Christmas financial slump

29/12/2021

Creditfix > Blog > Creditfix Debt Help Blog > How to avoid the post-Christmas financial slump

 

Christmas is a time of celebration, but it can also be a time of financial stress. Many people overspend during the Christmas period, and this often leads to a financial slump in the New Year.

In the same way that businesses need to plan for the fallow period immediately following the Christmas period, you need to map out your finances for the entire holiday season if you want to avoid a lean January.

In this article, we’ll explore why it’s so easy to overspend this time of year, the link between Christmas spending and serious debt, and we’ll offer you some tips to help you avoid the post-Christmas financial slump.

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Why is it so easy to overspend at Christmas?

You’ll be very aware of the Christmas hype by now. It’s that thing that can make you act and spend irrationally over Christmas, and lead to longer-term problems in the New Year.

The focus of the media on the lead up to Christmas is so great that many people feel obliged to buy presents for their friends and family, even if they can’t afford it. People also worry about what presents to buy for their loved ones, especially if there are children involved.

Christmas decorations, food and drink, and socialising with friends all contribute to the Christmas atmosphere – but they also cost money. The hype around Christmas forces many people to believe that getting into the Christmas Spirit means spending money they don’t have, even if it can lead to serious financial problems down the road.

The link between Christmas and Debt

We all want that perfect, magical Christmas experience with our friends and family, but that often means overspending or looking for ways to finance what we’re buying.

Many people spend too much at Christmas and leave themselves struggling financially in the New Year. They take loans or even ask credit cards companies to increase their limit.

This might ensure they have a better Christmas, but they can often be saddled with high interest rates and money worries that they’ll need to deal with the rest of the year.

Overspending at Christmas is more common than you might think. According to the Bank of England, the average UK household spends over £700 more in the month of December than in any other month, while in 2020, nearly half of the UK population admitted they didn’t have a budget for Christmas and were likely to rely heavily on debt.

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How do I avoid getting into financial trouble after Christmas?

The key thing is not to wait until after Christmas to take a look at your finances over the Christmas period.

If you want to avoid this post-Christmas financial slump, then follow these simple tips:

1. Plan your spending

It sounds obvious, but one of the best ways to avoid overspending at Christmas is to plan your spending in advance.

Decide how much you can afford to spend on presents, food, drinks, etc., and stick to that budget. This will help to keep your spending under control and stop you from going into debt over Christmas.

2. Set a limit on gifts

Another way to keep your spending under control is to set a limit on the number of gifts you buy.

Instead of buying lots of small presents, why not buy a few bigger presents? This will save you money and reduce the amount of stress associated with Christmas shopping.

3. Buy locally

If you want to save money on Christmas gifts, then try buying them locally. There are many great local businesses that sell unique and affordable gifts. By buying locally, you’re also supporting your community and helping to boost the local economy.

4. Register for a gift swap

If you’re struggling to find affordable gifts, then why not register for a gift swap? A gift swap is a great way for people to swap unwanted presents with other members of the community.

This means that you’ll get a gift you actually want, and it will save you money!

5. Budget for Christmas socialising

Many people think Christmas is a time for drinking alcohol, but this can be an expensive habit over the holidays.

If you plan on going out at Christmas, it’s important to budget for your drinks. You could also try buying your own drinks in advance so they are there when you arrive at the party.

6. Avoid payday loans to pay for Christmas

If you find yourself short of cash after Christmas, it might be tempting to take out a payday loan.

However, this is not a wise decision as these loans often have high interest rates and can be difficult to repay. It’s much better to take a look at your finances and see if there are any other ways you can get the money you need.

7. Take control if you do overspend at Christmas

If you get to January 2nd and realise you’ve overdone it over the holidays, don’t give yourself a hard time. You won’t be alone.

Beating yourself up about overspending won’t change things – but making a plan of action will. Everybody knows how tempting it is to stick your head in the sand when you’re too scared to look at your credit card balance, but that won’t make those bills disappear.

The only way to do that is to take action. So look check your bank balance, read your credit card bill, and get in touch with your creditors to sort out a payment plan. You might be surprised how accommodating they can be once you start the conversation, but they can’t help if you don’t engage with them.

– – – – –

Christmas can be an expensive time, but it doesn’t have to be. If you plan your spending wisely, you can enjoy the festivities without stretching yourself too thin financially.

Follow these simple tips and you’ll be able to avoid the post-Christmas financial slump.

Where can I get more advice on How to avoid the post-Christmas financial slump and other debt solutions?

To discuss your options and get the support you need to deal with your debt today, contact us now on 0800 0431 431 or click the button to get started

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