Christmas Credit Card spending

We all do it. Despite your best intentions after last year, you didn’t start saving early, you didn’t start buying presents early, and before you know it, the Silly Season has rolled around again and there’s only one thing to do: Panic! Panicking usually results in sweaty, frightening scenes in Oxford Street at 9pm on a Thursday night as you are jostled by crazed co-shoppers with pointy elbows and dangerously spiked heels, all frantically trying to get their Christmas shopping done in one hit.

If this rings true, there are a few things you can do that can help minimise the damage, so that come January you don’t have a massive credit card bill to depress you out of your detox diet and on to the leftover mince pies.

Christmas Spending Tips
1. Plan ahead – If possible, put a bit of cash aside each month in the lead up to Christmas, so that all your purchases don’t end up on your credit card. If it’s not possible to plan ahead in this way, consider applying for a credit card that offers an interest-free period on new purchases. Many credit card providers offer a lengthy interest-free period, allowing you a few months breathing space come January to let you repay the debts before interest charges begin. You could also consider a credit card that offers cashback on your purchases, and earn as you spend; however, this is only worthwhile if you will be able to repay the debts during the interest-free period in January.
2. Before hitting the shops, go on-line to compare prices, and look for the best deals. Shopping on-line for certain items makes sense: things like books, CDs, gift hampers and electronic items are easy to buy online, but you should always check the returns policy.
3. Set a price limit for each gift that you intend to buy and go shopping with a list. Looking around aimlessly will lead to spur of the moment panic purchases, which will probably lead to over-spending.
4. Use just one credit card for your Christmas spending, to make it easier for you to track your spending.
5. Try to limit purchasing things for yourself over the Christmas period; waiting until the January sales can mean huge savings.

The aftermath
Despite all your best intentions, you will probably end up with a higher than usual credit card bill come January. The best course of action is to repay the debts as quickly as possible, in order to minimise interest charges. If you really blew the budget, you might wish to consider shifting the debt onto a new credit card that offers interest-free balance transfers as an introductory offer, as this will give you time to repay the debts gradually without penalty.

Please note: This website, and the articles and information within it are based on journalistic research. It does not and should not be construed to constitute financial advice. Any information should be considered in regard to specific circumstances. All tips are followed at your own risk and should be followed up with your own research.  For more please refer to our terms and conditions of use.