Cutting the Credit Cards from Christmas

This is a collaborative post.

Image Courtesy of Pixabay

Christmas is a huge expense for most people. And it isn’t uncommon for many to spend more than they should. Spending is made more accessible by the many credit card companies offering buy now pay later incentives. Yet cutting the credit cards from Christmas this year means you won’t be going into the new year of 2022 with more debt or new ones you can’t really afford. According to an article at Money People, credit card rates are at the highest since 1988, so you may find using your cards isn’t the best idea at the moment anyway.

Plan and Budget Food Bills

Next to expensive gifts, your food bill is likely the most considerable expense at Christmas. But in the UK alone, 7 million tons of food are wasted each year. This statistic highlights that we all spend too much during the festive period. And it may eat into your disposable income. Therefore, plan and budget how much food you need. You can start by dividing portions between the number of people coming for dinner. Also, a giant turkey is too much for a small family. So unless you plan on using up masses of meat, a chicken is a better option.

Take Advantage of Deals

Most people eagerly await Black Friday for deals and bargains. Yet a study by the consumer group Which? found almost 90% of items were cheaper during the year or the last of poor selling stock. But you can take advantage of great deals coming up to the holidays. Branded chains like Boots have excellent 2 for 1 promotion on great gifts like makeup, bath and shower items and toys for the kids. Some of these items are highly desirable and expensive when not part of the Christmas deals. If you plan correctly, you can effectively half your gift bills. 

Reduce Gifts by 50%

If you find you are struggling, you can always reduce the price of individual gifts by half. For the most part, most people don’t care what they get from you, and cheaper yet thoughtful gifts are appreciated as much as anything expensive. So, for example, you can buy less expensive items for siblings and relatives. This way, you will have more available money for spending on the kids and whatever crazy expensive things they want this year. After all, your sister doesn’t really need that insane bottle of Carolina Herrera’s Good Girl perfume. 

Save Where You Can

When times are tough, it can be hard to save money. But squirrelling away some cash when you can will save you a lot of stress when the time comes. For example, just £100 per month adds up to £1,200 a Christmas. This amount should be more than enough for most since the average bill is around £900 to £1,000. Alternatively, you could purchase one gift per month, so you have everything in when the day comes. Then you can turn your attention to planning your excellent Christmas dinner rather than worrying over the expense of gifts.

Plan for Next Year

Of course, it never ends, and there’s always next Christmas to think of. If you find it challenging to save, or your monthly income doesn’t allow it, you can plan for next year with pre-pay Xmas services like Park. For a relatively small amount, you can pay each month for your Christmas essentials. Additionally, extras like chocolates, hampers and decorations are significantly reduced in price in the new year. So, keep an eye out in your local supermarket as they look to get rid of excess stock. You can buy it up for next to nothing and put it away for next year.