Start saving for Christmas as early as possible

Prepare for Christmas next year by saving a small amount each month in accounts with the best savings rates and start in January.

This is the advice of Adrian Pickersgill, director at Chatfield Private Client, who claimed that Christmas is an expensive time and if households want to avoid getting into debt, they need to be organised.

"Start planning as soon as you can - in future, start saving a small amount every month from January in order to spread the cost of Christmas. Prepare a budget for how much you will spend on presents and festivities. Stick to the budget and write down everything you spend so you can keep track," he suggested.

Online shopping is also a blessing for those with tight budgets, as it means they are less likely to be tempted by anything within the shops and gives them the opportunity to find the best deals.

"Christmas is about family and being with your loved ones, it is not about money, so don't ruin your day by burdening yourself with debt."

Mr Pickersgill warned that many people will be tempted to put the cost of Christmas onto a credit card, but he suggested that this is rarely a good idea.

Many people look for 0% credit cards, he claimed, but overlook the fact that balance transfers are charged at three or four per cent, meaning that they are rarely as inexpensive as they first seem and are certainly more costly than using cash savings in the first place.

The comments echo those of Dave Penny, managing director at Invest Southwest, who claimed that people should do their best to avoid borrowing at Christmas.

He advised people to make savings and work out a detailed budget beforehand, including wrapping paper and cards, so that they don't spend more than they intended.

Moneyextra.com recommends you take independent financial advice before acting on any article

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2011-11-30 13:21:05 © Moneyextra.com