‘Tis the season to start saving

November 26, 2020

With Christmas weeks away, it’s important to start planning your spending for what can be the most expensive time of the year. If you find budgeting a daunting task, here are some top tips to simplify saving and help keep you on track:

Make a list – and check it twice!: List everyone that you intend to buy gifts for, then budget a reasonable amount that you can afford to spend. Making a shopping list will also help you avoid impulse buying and keep track of your spending. Our online budget planner is a free and easy way to help you plan for and keep track of all your expenses and identify areas where you can cut back or items you can cut out, while you save.

Seasonal Savings: If you have any money left over after reviewing your income and outgoings, you might consider opening a savings account for Christmas. Check out our savings account Money Tool or think about saving with a credit union.

Keep your credit card under wraps: Credit card debt can quickly build if you don’t repay it in full straight away or within your repayment deadline. There are some small steps you can take to help you keep your debt to a minimum and ensure that your credit rating is not affected.

  • Try to keep your credit limit low – don’t view it as a spending target!
  • Consider reducing the credit limit to an amount you can comfortably afford to repay every month, so you don’t run up debt you can’t repay.
  • Don’t use your card for cash withdrawals except in emergencies, as you will be charged a high rate of interest often from the day you take out the money, as well as a cash advance fee.
  • Check out our free credit card Money Tool to see how long it will take you to clear your current credit card debt.
  • Set up a monthly standing order or direct debit for the minimum monthly repayment, or more if you can afford it, to avoid late payments. This is important as late payments can also appear on your credit history and may impact your ability to borrow in the future.

Check out if switching could save you money: Check to see if there is a better credit card interest rate available. Interest rates currently range from 13.8% to 26.6%, so switching could actually save you money. Some financial providers offer 0% interest on transferred balances for a limited introductory period. So, if you move your balance, every cent you pay will reduce your debt. Have a look at our credit card Money Tool to see what’s on offer.

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