As Christmas arrives quickly, we see many reports of people who are willing to go into debt this Christmas to afford all the things that they believe they should have at Christmas time. This particular mind-set is often found in parents who want their children to have lovely presents and a great Christmas experience, not thinking about the financial spot that this puts them in when the festive season is over and the bills start rolling in.
Pay day loans and other short term, high interest rate loans appear to help fill the gap between spending and receiving a pay check or income over the Christmas period. Be careful as the fine print often discloses that they are expensive loans that can leave you in a worse financial position than previously.
This then exacerbates any other debts or credit cards bills that may have been built up and can cause large financial headaches after the joy of the festive season is over. There are ways to avoid this without denying yourself and your family and friends of the Christmas that you all want to have. However, to do this requires money management, financial planning and self-discipline throughout the year.
You can work with a financial adviser to find the best way to save up money to have the Christmas you want. The key is to plan in advance for Christmas. With some help you may be able to save sufficient money through the year by cutting back in areas of your spending so that by the time November arrives, you’re all set to spend what you want and buy presents and enjoy nights out without worrying about what bills could arrive in January.
This is the practical option, but as we all know, Christmas is a time for celebrating so being sensible with money might not come naturally. An Independent Financial Adviser can help you with your financial planning, not just for Christmas but for life.
John Lansons has many years of experience in the Finance sector as a financial advisor. Find out how to find an IFA, mortgage adviser, solicitor or accountant near you, mortgage advice, building a pension plan, and growing a savings account.
