With Christmas and New Year on the horizon, it’s a great to celebrate, relax, and enjoy time with family and friends. But this time of year is also filled with financial traps that are best to avoid.
Here are some common tips and traps to enjoy Christmas without a “debt hangover” in January.
BLACK FRIDAY AND CYBER MONDAY SALES
The end-of-November sales frenzy can be tempting, with discounts on just about everything. Black Friday falls on November 29, and Cyber Monday follows on December 2. While these sales can save us money on planned purchases, they’re also designed to get us spending more than we intended.
Retailers use big discounts, and limited time offers to get us to buy quickly.
Tip: If you’re hitting the sales, go in with a clear budget and a list of what you genuinely need. Stick to the plan and avoid “just browsing” – it’s a trap that leads to impulse buys.
CHRISTMAS TRAVEL COSTS
We often travel over Christmas, whether to visit family, or enjoy some time away. Travel is wonderful, but the costs can add up quickly. Without planning, last-minute tickets and accommodation, can throw off your budget and lead to debt.
Tip: Book travel well in advance if possible. Use reward points if you have them or look for deals to reduce costs. Budget out your travel expenses early to avoid relying on credit.
DECORATING AND HOSTING COSTS
Getting into the festive spirit often means decorating the home and hosting gatherings. While these are great ways to celebrate, they can get expensive. Decorations and a quick trip to the supermarket can easily lead to unplanned expenses.
Tip: Set a specific budget for decor and hosting. Reuse decorations or DIY to save money. When hosting a meal ask guests to contribute a dish – it keeps costs manageable.
CREDIT CARDS AND BUY-NOW-PAY-LATER
Credit cards and Buy-Now-Pay-Later (BNPL) services can feel like convenient options to spread out Christmas spending, but they can lead to trouble. BNPL, in particular, can make purchases feel more affordable by splitting payments, but it still creates a debt that needs to be paid off.
Tip: Use cash or your debit card to stay in control of your spending. Avoid Credit Cards entirely and remember, BNPL just delays the cost, it doesn’t reduce it.
GIFT-GIVING PRESSURE
The pressure to find the perfect gift can make us spend more than we planned.
With sales and marketing, it’s easy to spend extra just to feel like we’re giving “enough.” Tip: Set a realistic budget for gifts and stick to it. Consider alternative gift ideas like homemade items, shared experiences, or even thoughtful notes that mean a lot without the big price tag.
Christmas doesn’t have to mean debt in January. Keep these tips and traps in mind to have a fun end to the year without losing control of your finances.
