Wednesday 26th November 2008
By Rachel Jones
Know Your Money Editor
As the UK faces a credit-crunched Christmas, worries about money are piling up against a background of a potential recession and widely reported job redundancies. With the festive holiday season being a time for presents, parties and lots of food, consumers are becoming nervous about money. Indeed, according to the Guardian, 9,000 callers tried to contact the Consumer Credit Counselling Service (CCCS) last week (commencing November 17th). In response to this, here is a list of the top ten saving tips to make sure that the big day is full of Christmas cheer and not a fully frugal one.
Christmas is not cancelled
1) Get a healthy body and wallet at the same time
Leading a greener lifestyle can also end up with more green for your bank account, according to Bupa. Kicking your cigarette habit can result in a saving of around £170 a month for a 20-a-day addiction, claims Dr Annabel Bentley, associate medical director at Bupa UK Health Insurance. Furthermore, swapping public transport for cycling and ditching the gym membership can together bag an extra £230 to plug the festive financial gap.
2) Spend only what you have
Esure advises people to only spend what they have. "Don't become indebted to banks and credit card companies. Just because money is made available to you doesn't mean you should take it. In fact, always spend within your means, even if that means tightening your belt or going without some luxuries once in a while," urges spokesperson for esure car insurance Asia Manzoor.
3) Savvy credit card secrets
However, the Guardian suggests that a zero per cent credit card can be a vital weapon in avoiding festive interest payments. Indeed, it notes that Halifax and Marks & Spencers both offer a ten-month interest-free period, while Barclaycard Breathe has a full year of zero per cent interest. Consumers should also look for offers that include cashback, such as the American Express Platinum Moneyback card, the resource adds.
4) Don't be the Christmas turkey
Over half of Britons have told Abbey that they plan to swap high-end brands with supermarkets' own products for the yuletide feast. "We all know it's going to be a tough Christmas and while presents may not be as extravagant as previous years, it's great to see that Britons are determined not to let it spoil their Christmas lunch," comments Callum Gibson, head of credit cards at Abbey.
5) IOU a present
The Guardian suggests a novel gift - people should stick IOU notes in Christmas cards as a promise of a present to come. Indeed, waiting until the shops shave pounds off their goods in the new year sales could be one way for Britons to save extra cash. As such, bargain hunters will avoid the marked up prices that often come with the December panic-present rush, the resource adds.
6) Home is where the heart is
Pricey pub Christmas meals will be shunned by 31 per cent of people, who told Birmingham Midshires that they will stay at home rather than eat out on this December 25th. Furthermore, 34 per cent admit they will re-use last year's tree.
7) Budget bonanza
The Guardian advises cash-strapped Britons to draw up a budget. "It may sound boring, but a budget for all your spending - including food, decorations and socialising, as well as presents - will help prevent you overreaching yourself," the newspaper notes.
8) Get creative
According to Birmingham Midshires, eight per cent of people aged between 25 and 34 will be making their loved ones' Christmas presents this year. Indeed, 11 per cent admit that they will give family and friends last year's unwanted gifts. But be careful not to forget who gave you what!
9) Ask for help
Not only are there many debt charities that concerned consumers may want to ring, such as the CCCS and Debtline, Frances Walker, spokesperson for the CCCS, tells the Guardian that people should gently explain to their children and family that because of the credit crunch, this year may not be as extravagant as it may have been in the past.
And it all starts again
10) It is never too late (or early) to save
The Guardian urges people to start saving for Christmas 2009 now, while Nationwide advises Britons to pick the right type of savings account for their needs and to maybe allocate one as the Christmas account. "For example, why not set up a regular savings account - such as the Nationwide Regular Savings account - which is a good account for those who don't save regularly, as the more people save, the better the rate," suggests Nationwide savings spokesperson Gemma Chittenden.
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