Christmas is fast-approaching with less than 5 weeks to go and it is one of those times of year that we normally throw caution to the wind, and just blow our budget regardless of the consequences.
The Christmas New Year period means increasing spending for many of us. We often get caught up in the spirit of Christmas spending on gifts, holidays and food. More often than not Australian’s turn to their credit cards as a means of meeting these extra costs!
Unsettling facts from the Australian Bureau of Statistics show that over 14 million Australians are paying off over $40 billion in credit card debt and in 2008, spent $36.95 billion dollars during the Christmas season at retail stores with two in ten relying solely on credit for their Christmas Spending. One in five Australians are still paying for last year's Christmas only six weeks before this festive season, and by Christmas day almost 17% will not have totally cleared last year's debt. Consider this for every $1000 spent on a credit card paying the minimum payments will take you 5 years to pay off.
The biggest tip is to put the credit card away for a rainy day and celebrate Christmas without dragging home a sack load of debt disguised as presents.
Remember that spending less at Christmas doesn’t mean you have less fun.
Here are some tips to help you get through the Christmas New Year season without a debt hangover!
Start Saving Early
§ Open a Christmas savings account.
§ If you committed to saving just $20 per week of 50 weeks you will have saved $1000.
Budget for Christmas early
§ Create a budget.
§ List all the people you need to buy gifts for and write down a specific amount for each person. § When shopping for each person and stick to your allocated budget.
Start Shopping Early
§ Consider shopping throughout the year. The closer it gets to Christmas the more expensive items can get.
§ When shopping leave your credit card at home.
§ Make a list of what you will need for your food menus.
§ Withdraw enough cash as per your budget to complete your shopping.
§ Take advantage of lay-by.
§ Start buying extra bottled and tin foods now. Prices increase the closer Christmas gets.
Be Creative with your Gift Giving
§ Try and make a few personalised gifts yourself. The internet is full of creative ideas.
§ Homemade cooking makes for a great gift.
For Large Families, draw a name from a hat
§ This will reduce the number of gifts you need to purchase.
Shop online
§ You can find some great bargains shopping online but ensure that you are using secure sites and keep a copy of your transactions.
Don’t fall into the debt trap over Christmas!
Christmas is about spending time with family and friends remember spending less at Christmas doesn’t mean that you will have less fun!
Sticking to your planned budget will ensure that you place yourself in a great position to start 2010.
