How to avoid getting into debt over the festive season

Credit: ITV Anglia

It’s hard to curb a natural instinct to be as generous as possible during Christmas, but it comes at a price.

Borrowing is going up and it's expected that debt this festive season will be similar to this time last year.

The figures are startling. More than a third (34%) of Britons surveyed by National Debtline said they borrowed, or planned to borrow, money to cover the cost of Christmas presents. Of that number 76% used a credit card to pay for them.

One in 20 - around two and a half million people - missed a payment on everyday household bills in order to fund Christmas spending. This includes those falling behind with 'priority debts' including rent, council tax and energy bills.

Helen Crowther, from the Cambridge Citizens Advice Bureau, says we can avoid getting into debt by first deciding a budget for Christmas, and then choosing presents according to that budget.

She points out that if you decide on your presents first, then it can be tempting to starting borrowing to pay for them.

Helen suggests saving up throughout the year for Christmas, as it can be a such a big cost.

More than a third of Britons had borrowed or had plans to borrow money to spend on Christmas presents. Credit: ITV Anglia

But if you do find yourself in debt, Helen says it's important not to be feel ashamed about it and it happens to many people.

She says you should visit your local Citizens Advice Bureau as soon as possible, where you can get help on budgeting and to understand what your options are for dealing with debt. They can help you find ways to maximise your income income, such as shopping around for better deals for utlilities.

Helen also recommends:

  • Avoid spending money that you don't have. If you borrow money on credit, you might be paying it back well into next year.

  • If you do you want to borrow money, work out the costs over a long period of time and shop around to make sure you're getting the best deals.

  • Save with your local credit union, which can offer small loans at much lower interest rates than payday lenders.

Click below to hear Helen's top tips to avoid getting into debt this Christmas.