As we leave summer behind in the UK, many are now looking towards Christmas, wondering how they will be able to cope, how they will be able to pay for the children’s presents.  Christmas is a very difficult time of the year for many, when emotional blackmail can actually see the majority of us spend more than we had bargained for.  What are the pitfalls to watch out for?

Do not over spend!

While it may seem obvious, this is the major downfall of many people who are already sitting poised with their credit cards to hand and their eye on the next big gift for their loved ones. This is also the time of the year when your credit card will melt, racking up masses of debt which many people will find difficult to pay off in the new year.  This is the time of you when you need to stay focused and keep to your budget - no matter how hard that may be!

The credit card culture in the UK has never been more alive, and with the opportunity to purchase more and more gifts online, this Christmas seems set to be a bumper one for the retail sector.  Historically, even in times of doom and gloom, people have always found money for the Christmas period, and while it may take until next year to pay off that debt, few will be sitting back on their hands.

How can you ensure that you do not fall into the debt trap?

While it is easy to advise staying within your budget, how many of us will actually do that? How difficult is it not to buy that extra little gift for a loved one, what really is the price of that little smile on their faces as they open their gifts on Christmas day.  Unfortunately to many people, Christmas is a very traumatic time, and these are the people who need to ensure they spend within their limits.

Calculate what you can realistically expect to spend, and if you know that you are going to over spend, then why not look at a loan rather than very expensive credit card debt.  A loan is more structured and provided that you arrange a payment plan that you can afford, you will be able to reduce your debt in a controlled manner.  These minimum payment rules on credit cards can often cause major problems!