Getting your finances in order for Christmas

With the summer holidays well and truly over and Christmas fast approaching many people in the UK may be panicking over the state of their finances. Many have blown a large chunk of their savings, overspent on credit cards or paying back loans because of their holidays leaving them with very little to start thinking about the expenses of Christmas.

For those that want to make sure that they are financially prepared for the festive season now is the time to take action, and there are a number of steps that you can take to make sure that you do not find yourself lacking in funds when it comes to Christmas spending money.

Christmas is a wonderful time, but also a time that brings with it many expenses. In addition to finding a small fortune to cover the cost of gifts you also have to find money for clothes, social events, entertaining, and even doing up the home. All of this can amount to a tidy sum, and the last thing most people want is to find themselves running out of available funds as Christmas comes around. However, some tips that can help to ensure that you do not encounter this problem include:

Making cutbacks

By going through your monthly outgoings you could find a number of places where you can make cutbacks in order to put a little extra aside in time for Christmas. This includes cutting back on luxuries and outings over the coming weeks, cancelling any useless subscriptions or memberships that you no longer use, and looking at any other areas where cutbacks can be made.

Switching services and providers

You will be amazed at how much you can save each month by switching various providers and services. This includes gas and electricity provider, insurance providers, and even credit cards – perhaps you have some high interest credit cards from which you can switch your balance onto a 0% balance transfer card. All of these small savings can add up quite quickly, enabling you to put a little more into that all important Christmas spending account.

Extra work

Many people take on a second job as the festive season approaches, and there are certainly plenty of opportunities around with many retailers and companies taking on extra staff members as the busiest time of year approaches. Start looking around and getting those applications in now, and you could soon start raking in the extra cash for your Christmas splurges.

Applying for credit

Many of us rely on credit to find this expensive time of year, and if you are planning to put Christmas on the plastic then now is the time to start applying for credit cards or a personal loan. As Christmas gets nearer credit card companies find themselves inundated with applications, and this can slow processing down, so the earlier you apply the better. Also, look out for deals that offer long 0% interest on purchases, as this will enable you to spread the cost of Christmas without having to fork out on costly interest charges.

By getting your finances organized as early on as possible you can cut out much of the stress and hassle associated with Christmas finances. Instead, you can enjoy the peace of mind that your finances are in order, and you can start planning and looking forward to one of the most exciting times of the year.

Tom Smith
8th October 2007

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