7 Tips to Help You Stay Out of Debt at Christmas

debt reductionChristmas is definitely a time for giving, but don’t let your generosity sink you into debt. A national survey recently uncovered that 27% of people deep in debt got in that position because they took out loans and credit cards to cover their expenses during the holidays, and then things started to spiral out of control from there.

Don’t want this to happen to you? Here are 7 tips to keep in mind:

Start with a budget

The best way to stay out of debt during Christmas is to have a budget and then stick to it. This makes it impossible to spend more than you can afford, which in turn reduces your reliance on loans and credit cards.

Save throughout the year

Think about it: if you saved just $20 a week throughout the year, then by Christmas time you would have about $1000. This kind of cash would certainly help you to stay out of debt…so get saving!

Don’t buy expensive clothes

If you’re going to be attending multiple Christmas parties then it can be tempting to start spending a lot of money on expensive clothes. Don’t do it. Instead, Buy ugly Christmas Sweaters and call it a day.

Do your shopping early

Use the laws of supply and demand to your advantage. For example, during summer things like Christmas decorations might be on sale if a retailer needs to clear out stock, but during November and December these items are back to full price again. Save money by doing your shopping early and keep yourself out of debt at the same time.

Compare prices

If you are going to be buying Christmas gifts online then make sure you always compare prices. The difference can often be amazing, and you can make significant savings just by checking a few extra sites.

Ignore loan and credit card offers

During the Christmas period, loan and credit card companies are in hot pursuit of your custom, which leads to you getting many emails, texts, and letters all offering you great deals if you borrow some money from them. Don’t give in to the temptation. Stay strong and remember how good it feels to be debt free.

Set a price limit

One way to avoid spending loads of cash on Christmas gifts is to set a price limit with your family friends. As an example, you can’t buy each other a gift that costs more than $20. This makes gift giving cheap, and means nobody has to go into debt.