Christmas is Nearly Here!! Is this a good thing??

With Christmas nearly upon us the time to spread the joy is knocking on the door. The question is, will the joy that we spread now come back and bite us where it hurts?

In short yes! With many of us relying on credit cards to carry us through this insane shopping season we often don't factor in that we need to pay this debt off and when the bill arrives in January along with the usual household expenses it can all seem too much. Especially if you have a home loan to juggle as well.

We can all too easily get caught up in the madness which is Christmas and yes it is great to be able to buy your loved ones a lovely present but do we actually sit back and consider the stress this will put us under when we actually have to pay for them all? No, and this is why you need to think carefully about what it is your actually spending, here are some tips on how to better manage your Christmas spend:

1. Set a firm budget on all the presents you need to buy
2. Plan months in advance and start saving towards this budget so you use cash you have and not credit
3. If you see a present that is on special even months before Christmas grab it now and keep it aside, this way you break up the spend required and save yourself some money in the process
4. Try to ensure you have enough funds available in January to cover all the bills and at the same time plan out what your bills will be for January so you save towards this as well
5. Keep in mind that buying a present is not about outdoing anyone in the value of the present, Christmas is not a competition

Being in the finance industry I often come across many people who approach me for assistance not long after the new year has begun and they ask me to help them lower their debt. There are many ways in which people can help themselves and the most common is that of consolidating their debt into either a low rate personal loan or into their home loan.

The point I make with all of my clients is that it is a great idea to consolidate debt and if they are serious about making a long term difference then as part of the debt consolidation process they need to cut up the credit card! More info at www.aussiewisefg.com.au

In the most they don't take too kindly to this suggestion but once I highlight the fact that if the card is still there then the likelihood is that they will again rack up the debt in a short space of time. If this happens and it most likely will, they will simply end up with another debt by way of a personal loan or a higher home loan repayment AND have to deal with a burgeoning credit card debt as well so they will actually be worse off then before.

Remember that Christmas is meant to be a joyous time and if approached in the right way shouldn't cause more stress in the new year simply to enjoy a few days of celebration.

Above all else, remember that Christmas is a time of celebration of another kind for many people so retain your focus on this and remember that buying presents is not the only aspect of Christmas we need to celebrate.