Here's a Christmas gift that won't cost you a penny

‘Tis the season for giving, and we’re going to give you the chance to avoid a very common trap that exists at this time of the year. The trap we’re talking about is how easy it is to spend more than you can afford at Christmas time, which can lead to the misery of a debt hangover in the New Year

A poll was conducted recently by Citizens Advice Medway (CAM) and it revealed that a worrying 16 percent of people plan to take on some form of debt this Christmas. It is concerning that if a number of people openly expect and are willing to get into debt over the festive period, there are a lot more people who will do the same unintentionally. When asked why many people cited that they wanted to treat their family after a tough year. That’s how easy it is to fall into the trap. We can all understand the desire to give our family a great time, especially after the difficult Christmas everyone experienced in 2020. We do not just need a proper Christmas, we all deserve one

Whether it’s wanting to make sure that the children have that toy or those trainers they have been obsessing over, or giving our extended family a gift to cheer them up, we are all trying to compensate for not spending Christmas together like we used to.  This is why it is easy to feel this year, we all deserve a special treat. ‘Buy Now, Pay Later’ services can be big debt traps that engulf thousands of people yearly. The week or so before the big day sees the final sprint for that perfect Christmas, and this is when most of us are at our most vulnerable to the trap.

If you’ve completed all your shopping by now, well done. But for most of us, December will be a blur of last-minute buying and shopping. Traders will use this time with early sales to lure you into spending more to get as much money out of you as possible. But you don’t need to fall for it. You can avoid it! Citizens Advice Medway gives you our top tips for Christmas savings

Planning is key

Firstly, don’t rush out (whether in-person or online) and buy the first thing you can find because you’re worried it won’t arrive before Christmas. Sit down, take a breath and work out a list of how much money you can afford to spend. Be honest about this and then make a list of all the things you want to buy. You can research prices online and make sure you shop around for the best ones. Next, match up these two lists and check them, twice (pun intended). Now when you start your shopping, you have a plan in mind. Simply stick to it and keep a note of what you are actually spending so you know how close you are to your overall limit

Avoid special offer

Secondly, remember shops exist to make big profits!. Retailers are always trying to get you to spend more money. Do you really need those two extra items in the “three for two” deal? Because if you don’t, it’s not the bargain it seems: you’re actually throwing away money unnecessarily. Just buy the single item you wanted – and budgeted for. You’re not missing out on anything there. In fact, you can quietly congratulate yourself for avoiding that trap. The same applies to that “XX% off” deal. It’s only really an “unmissable offer” if you can afford to pay the balance and if you wanted the item in the first place. If not, they’ve just shrewdly hooked you into paying money you can’t afford for something you don’t really need

New Year bill

Finally, another thing to bear in mind when working out your budget is to remember your New Year bills. Many people are paid early in December and this means it can be five to six weeks before the next payday. Any bills you have in January will need to be paid from your December wages, and the bills which land in January tend to be higher than usual. You don’t want to be paying off shop debts and credit card debts at the same time

Please don’t think we are underestimating the challenge of setting a budget and sticking to it.

Of course, we want you to have a great Christmas and yes, you and your family absolutely deserve it - and yes, buying nice things is one of the best ways to get there. But we know that this period isn’t always easy as, even when money is strained, the temptations of Christmas can be enticing. 

Citizens Advice Medway has operated for decades, and year after year we are sat in our interview rooms in January/February with people who are distraught because they fell into the seasonal spending trap. Sure they had a good Christmas, but now they’re having to sit in the dark with no heating, worrying how they’re going to feed their family and pay their bills. Credit card ratings go downhill, along with your mental health, and the trudge to the food bank makes Christmas seem a long time ago

Avoid the debt trap. Make a plan. Have a great Christmas (and a debt-free 2022 as well)

How can Citizens Advice Medway help

If you have any other questions or problems regarding your finances we can help. Citizens Advice Medway’s confidential, independent, impartial and free service is always available, with the aims of providing quality advice and campaigning for fairer practices both locally and nationally

• If you need any other advice or support, you can access our services via the following options
• You can call us on 01634 383 760 between 9:00 am and 5:00 pm Monday to Friday. Local call rates apply.
• You can email us at info@medwayadvice.org.uk. We will aim to get back to you within 5 working days. 
• You can access our webchat service through the button on the right side of each webpage on this site between 10:00 am and 12:00 pm Monday to Wednesday.
• Or you can click here to be directed to our contact page.