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Lenders and Advisers offer Christmas spending tips
Many people will be using credit cards and other forms of personal credit in the run-up to Christmas. At a time when most households are keeping a tight hold on their budgets, careful planning of Christmas spending is essential. These tips from the Consumer Credit Counselling Service and the FLA may help:
- Spread the Cost: See if you are eligible for a 0% credit card, or other low-rate credit deals. This could give you several months’ interest free to pay off your purchases, meaning that you can spread the cost of Christmas.
- Shop Around: Shop around for the best credit deals, but don’t make too many applications as this could signify to lenders that you are not a good credit risk.
- Sales: Many shops have already announced pre-Christmas sales. And don’t forget to check online where you may be able to get presents more cheaply. The cost of presents and entertaining can be expensive, so early sales can provide real help in keeping spending manageable.
- Saving: Don’t forget that a lot of bills will come through in January – and not just from your lenders. Make sure you keep some money back to pay them. If you took advantage of buy now, pay later offers, organise your finances so that you can make the contracted repayments when they fall due. Sit down and work out where you can make savings in your budget, so you can pay off your debts.
- Speak to your lender: Talk to your lender at the earliest opportunity if you think that you might have problems in making your repayments on a credit card, store card or loan – whether that’s before or after Christmas.
- Seek debt advice and face up to your situation: Contact a debt charity such as the Consumer Credit Counselling Service (CCCS) or your local Citizens Advice Bureau for free advice and support if you are struggling to repay what you owe.
Fiona Hoyle, FLA Head of Consumer Finance, commented:
“With many families keeping a careful eye on their Christmas spending, up-front planning is essential. Good deals are available on credit cards and in-store when using store cards or store instalment credit. But before using credit, think how you’re going to pay it back, and what the best product is for you.
“If you’re already in financial difficulty, speak to your lender as soon as possible to discuss a repayment plan – don’t take on further credit.”
Delroy Corinaldi, CCCS external affairs director, adds:
“There are 6.2 million households who remain financially vulnerable for which Christmas will be a very difficult time. Not only will it be a huge burden on their budgets, but it is a time that the emotional impact of their financial situation can really hit them.
“It is crucial that they don’t suffer alone and seek the help that is available from debt charities such as CCCS and Citizens Advice Bureau.”
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Note to editors:
In 2010 FLA members provided £72.0 billion of new finance to UK businesses and households. £51.7 billion of this was in the form of consumer credit, a third of all unsecured lending in the UK. And £19.0 billion of it supported the purchase of new and used cars, including more than half of private new car registrations in 2010.
For further media information, please contact:
Russell Hamblin-Boone, FLA
T: 020 7420 9656 E: russell.hamblin-boone@fla.org.uk M: 07810 374110
Helen Saxon, FLA
T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766 993