Don't get into debt this Christmas - written by Benedict Rohan

This the season to be jolly ... and to spend lots of money, it would
seem. Christmas can be an enormous strain on the family budget. It's
not just presents that you have to worry about - which itself can be a
nightmare as you battle with pressure from the kids for the latest
must-have toys and gadgets - but also food, drink and entertainment.
It's therefore not surprising that Christmas is the time of year when
we notch up the most debt - although most of us really start to feel
the pinch in the start of the new year when we struggle to keep up with
household bills while continuing to pay for our Christmas indulgence.
Here are some tips on how to save money and avoid debt over the festive season.

First and foremost, remember that your family and friends will be
understanding if you are on a tight budget over Christmas and can't
afford to be very extravagant. If anyone is expecting large gifts,
manage their expectations, especially kids. Let them know that Santa
can't bring everything that they want - but that he'll bring them very
good gifts all the same if they've been well behaved.

Don't forget your normal budget - ensure that regular household
bills are paid as usual, such as council tax, utility bills, rent etc.
Remember that your priority is to keep a roof over your head.

Work out how much money you have left to spare for Christmas
after your normal budget and set your Christmas budget.

Save small amounts regularly throughout the year. You could even
open up a bank account specifically for Christmas savings to ensure
that it stays separate from the rest of your finances and to avoid the
temptation to spend it.

Try to spread your purchases throughout the year, even as far
back as January - you can get great bargains in the January sales! Leaving
it to the last minute means you're more likely to panic and spend more
money - or put more on your credit card.

Don't be tempted by credit offers in shops - this is just storing
up trouble for the future. If you can't afford it, don't buy it. Also
beware of cheap deals and rates before Christmas - chances are the APR
will be hiked up in the new year.

If you have to get a loan or a credit card, shop around for the
best deal as you would at any other time of year, and leave yourself
plenty of time so that you don't sign up for anything in a panic at the
last minute.

Make deals with family or friends not to give each other presents,
or agree on a fixed maximum price that you will spend on each other.

Do a present exchange - a secret Santa or a lucky dip - with
groups of friends or colleagues so that everyone in the group buys just one
gift. It can be fun getting together to do the exchange. In a secret
Santa, everyone's names are put in a hat and each person pulls out a
name for whom they must secretly buy a present. It's quite good as you
know who you're buying for so you can get them something you think
they'll like. With a lucky dip, everyone simply buys a present that
would be suitable for anyone, and they all get put into a sack and
pulled out one by one at random.

If you can't afford to do rounds on your Christmas night out with
work colleagues or friends, just ask if you can pay for your own drinks
- they won't be offended. An even cheaper option is to go tee-total and
drive!

If you're entertaining others at Christmas, you don't need buy
and prepare all the food and drink yourself - you could agree to share the
cost with your guests. Someone could organise the starter, someone else
the dessert, another person could bring the cheese and biscuits and yet
another could supply the drinks. In this way it can be a nice surprise
for everyone to see what everyone else has brought and you're sure to
have plenty of variety!

Look out for postage and packaging costs if you're doing your
Christmas shopping online - sometimes this can add a lot to the price.
Try to find a site that sells what you want with the cheapest postage
costs, or try to plan your purchases and buy them all in the one order
so that you're only charged once for delivery.

Make your own Christmas cards or perhaps even your own presents
if you're the creative type - the personal touch is often nicer anyway.
You could make up your own gift hamper, bake your own cakes or
chocolates or buy a photo frame and fill it with a collection of
special memories for someone.

Don't despair if it all goes wrong, though. There are lots of
organisations that can help you. The most important thing to do is
acknowledge your debt problem and act quickly before you get in too
deep. The Citizens Advice Bureau (www.adviceguide.org.uk) can offer
free and impartial guidance and advice, as can the government
Insolvency Service (www.insolvency.gov.uk) and the Consumer Credit
Counselling Service (www.cccs.co.uk).