Warning – Don’t Buy Christmas Gifts on Credit

The festive season is around the corner and with it comes the unmistakeable pressure to spend money. While we all love to connect with our families over a delicious feast, enjoy traditions that have spanned over many years and make lifelong holiday memories, this does not have to include getting into debt for Christmas.

The Christmas holidays are notoriously difficult for consumers who are already feeling the pinch of financial strain in their lives. It is not uncommon for struggling individuals to make extravagant purchases on credit in the weeks leading up to Christmas – purchases that they often regret as they sink further into debt. No gift is worth giving for the sake of your sanity and financial wellbeing, and out-of-control spending for the sake of Christmas takes away from the meaning of this special time. At Debtco Group, our financial experts advise clients to prioritise their budget according to what you can reasonably afford, and keep track of their festive season spending in real time.

Christmas Debt can be avoided if you make a conscious effort not to by Christmas gifts on credit. This straightforward philosophy, along with saving in advance for the gifts you add to your budget, can make your holiday so much less stressful. Buying gifts that you’ve saved for over time is rewarding without causing you to question your purchases, and makes giving gifts a much happier experience. It helps to put into perspective the financial circumstances of those around you and not to compare what you can afford with what others can afford. Once the season ends, you will be the one left with bills and debt repayments (usually with high interest rates) that can potentially leave you over-indebted.

When you buy Christmas gifts on credit, you are actually spending money that you don’t have. What this means is that even though you are purchasing gifts once-off, you will be paying for them over time and even if your financial situation changes, you are still responsible for honouring your debts. Over the season, statistics show a massive increase in the amount people spend based on what they earn. Knowing when to limit yourself and how to budget for Christmas and the festivities that come with it will help you to avoid ending up in a complicated situation, where you’re left paying back far more money than you should be.

At Debtco Group, we work with over-indebted consumers to provide an effective Debt Counselling service. Although it is always better to avoid debt wherever possible, we are here to guide struggling individuals who cannot overcome their debt problems themselves. Make smart decisions this festive season and don’t let debt get in the way of enjoying the true spirit of Christmas.