The independent charity Citizens Advice Bureau has identified ten top tips to help people avoid a Christmas debt hangover:
Plan early for Christmas. Work out how much you're going to spend on each person – and stick to it. Manage expectations as to what you or Santa can give.
Don't forget everyday bills like rent, utilities and existing debts still have to be paid. Even though it's Christmas, get your priorities right.
If you need more money, don't just run up an overdraft without talking to your bank first – it will prove more expensive.
If you can afford to pay for your goods outright, don't be persuaded to take out extended credit agreements unless they really do work out cheaper.
Shop around to find the best prices. Be wary of extended warranties; the repair could cost less than the warranty.
Whatever the temptation, don't buy from unauthorised traders or borrow from unlicensed lenders. Any savings or convenience may turn out to be a false economy.
Read the small print and check for hidden extras before signing credit agreements. Work out the total payable and make sure the repayments are within your budget.
If you're going to use a credit card, shop around and compare terms. Some cards charge high interest rates but provide interest free periods or discounts.
Be organised. If you've borrowed money don't forget to make your repayments on time, even if only the minimum, or you'll face extra charges.
Once Christmas is over, think about what went well and what didn't. Start planning how to do it differently next year. It might also be a good time to start saving for next Christmas.
