After nearly two years of restrictions, the temptation to overspend this Christmas is stronger than ever says Cambrian Credit Union General Manager Ann Francis, who has some helpful tips and advice to help you avoid a New Year financial hangover. 

After the pared down Christmas season of last year, it feels like this year we are determined to celebrate. I don’t know what it’s like where you live, but I saw more Christmas trees than ever in November and we know many of our members started their Christmas shopping in earnest in October. In fact, retailers reported a whopping 1.6 million people bought their Christmas puddings in October, up by 400,000 on last year. It’s no surprise we started Christmas early, we’re all worried it might get cancelled – again!

According to the Bank of England the average UK household spends an extra £740 in December, and we can be sure that this year is likely to be more expensive - not just because we’re determined to celebrate. Soaring energy prices, product shortages and rising food costs mean inflation is at a 10-year high of 4.2 per cent. Everything from the Christmas pudding to the gas to cook the turkey will cost us more., which means sticking to a budget is more important than ever.

There is still time to keep a reign on Christmas spending and here are some tips to help you avoid a New Year financial hangover:

1: Set a budget and prioritise what makes Christmas special by writing a list of essentials and sticking to it. 

2: Bring your children into the Christmas budgeting process to teach them the value of money and help resist ‘pester power’. 

3: Are there any gifts you received last Christmas that you’ve never used?  There’s still time to sell them and use that money to offset your spending.

4: Don’t buy your item until you compare a number of retailers. This has never been easier thanks to online shopping.  

5: Don’t be afraid to tell loved ones if money is tight. You could suggest a family price limit on gifts or invest your time with your loved ones, which with all the restrictions and separations we’ve been through is worth more than any gift.   

6: Why have a Boots Advantage/Tesco Clubcard/Sainsbury’s Nectar if you never claim the points you save? If your loyalty cards are loaded up it’s time use them on gifts or food. 

7: Instead of spending a fortune on cards and stamps why not opt for online e-cards and charity cards.

8: Get crafty with the kids to make some great (sentimental!) decorations you can display every year. 

Finally, if your budget won’t stretch and you are thinking of borrowing this Christmas, make sure you compare interest rates and the total amount paid, not just the weekly or monthly repayment.

Consider your credit union.as we lend from £50 to £15,000, with no early payment fees and interest is paid on the reducing amount, and you can save while you borrow to start your Christmas fund for 2022!

  Cambrian Credit Union is a financial co-operative that offers ethical savings and loans. With no external shareholders, profits are ploughed back into providing services to members. For more visit www.cambriancu.com.