Debtors should save now for Christmas 2010, expert says

Those worried about falling into debt over the Christmas period have been advised to consider saving now for the festive period in 2010.

Andrew Hagger of Moneynet.co.uk observed that people ought to start “getting used” to keeping back a portion of money every month, rather than using credit cards to fund the yuletide season as this can prevent them from being susceptible to extra interest.

He recommended debtors think about opting for regular savings accounts.

“You put in a set amount each month – usually done by standing order – and then after 12 months you will get the interest on your savings,” he said, adding that the rates for these are superior to those on standard accounts.

Mr Hagger’s recommendations come after money.co.uk recently revealed that 30 million adults in the UK will be starting the new year with an £8 billion deficit in total household finances, with just 15 per cent spreading the cost of Christmas over the whole year.