18 Dec How to avoid a financial hang over this Holiday Season

We get it, Christmas time can be expensive.

Everything sort of comes at once and you are put through the pressures and stress of having to buy not only a larger than normal amount of food and alcohol but also presents for your loved ones.
The plastic takes a hammering over a 4-6 week period and before you know it you have credit card debt that you may not have budgeted for and can often take a lot longer than expected to pay off.
Start your year off on the right financial foot with our guide to avoiding a financial hangover these holidays…

TIP 1: HAVE A PLAN

This might sound simple but it is amazing how many people don’t really have a plan for what they need to buy and how much it is going to cost.
A well formulated plan will save you both time and money. You know exactly what you are going to get and you know that it is within the budget you have already set up.
Just heading in to the Christmas shopping with no plan can be a recipe for disaster. You’ll grab things that you haven’t had time to consider and the total bill will add up before you know it.
Control your spending from the start, have a plan.

TIP 2: STICK TO THE PLAN

Don’t be taken off the path you have set out for yourself by hype sales or last minute upgrade decisions. Sticking to your plan is half the battle but the rewards will be there if you can pull it off.

TIP 3: DO YOUR HOMEWORK

Try to find the best deals on everything you need rather than just buying from the first store you see it in. Don’t be shy in comparing prices online also. Buying online has its obvious advantages in time savings but it can also save you money as well. Small savings here and there across a large number of items can really make a difference when it comes to paying off the plastic at the end of it all.

TIP 4: SPREAD IT OUT

Try to not leave it all until the last minute. If you can create your plan early enough you can start buying the things you need well before the Christmas rush. This will also reduce the sudden impact on your card and give you the opportunity to pay down some of the debt as you go rather than letting it all build up and then trying to sort it out at the end.

TIP 5: USE SOME OF YOUR OWN MONEY

If you can, spread out your spending using a mixture of both credit and cash. Too many people forget that using a credit card is actually like taking out a loan to buy that item and the money will need to be paid back with interest.
Avoid building up too much credit card debt by using a combination of your own money and the banks money you have available to you on your credit card.

TIP 6: PLAN TO REPAY

If you know your plan to buy, you should also have a plan to repay. Set a date that you will have paid off all of your credit card debt and don’t let it stretch too far into the new year.
This will put you at ease and allow you to enjoy your holidays knowing that you have your finances completely under control.

If you need any help in sorting out your credit card debt at the end of the holiday period, get in touch with us at hello@finestream.com.au or call 1300 669 538 to discuss a debt consolidation option to suit your needs.