Brits cautioned on Christmas Overspending and avoid New Year Debt

Posted 2007-12-3

Brits are cautioned on Christmas spending as high prices and interest rates, coupled with slow rise in wages are putting more people into debt. In 2007, most queries that Citizens Advice received were enquires on mail order debts, loan and hire purchase arrears, overdrafts, credit card debts and catalogue debts. 

Teresa Perchard, director of policy at Citizens Advice states that every year they see huge increase in debt problems right at the beginning of the New Year. 

Citizens Advice in collaboration with Barclaycard, has issued a guide on how to avoid beginning the new years with debt hangovers. The tips given here aim to guide people on how control expenditures and not overspend during Christmas time: 

Plan Christmas Spending – Come into an estimate on expenditure for each person and strictly follow this set budget. 

Pay Bills Regularly – Pay monthly expenses like mortgage payment, rent utility bills, food bills. Expenses such as council tax and other debts should not be left in the payment pending list as this adds up to a huge debts amount later. 

Avoid Unauthorised overdrafts – Try avoid an overdraft itself and if you require one, talk to the bank before taking one .Do not go in for any unauthorised overdraft. 

Do not take up shop credit offers – Always pay up in cash, cheque, or debit card for our Christmas shopping. If you want to take up an attractive cash offer that says ‘Buy Now, Pay 2009′, check if it really cheap, by reading the small prints on the offer. You should be able to make monthly instalment paying on such credit without difficulties, otherwise avoid shop credit offers. 

Check different offers before purchase - Look into different shop offers and make comparison you can search the internet for shopping deals before you make a purchase. Since every business is slashing prices to attract people, looking around can really bring down you expenses. 

Extended warranties can be expensive – If you want t a warranty, you have to pa for it. This cost can be more than the cost of repair itself.

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