How to avoid Christmas debt

Britons have been offered a checklist of things to avoid in order to reduce yuletide costs and perhaps prevent themselves from sliding into debt.

Price comparison website moneysupermarket.com suggested that people consider steering clear of store cards, despite the fact that immediate discounts on gifts or money back may be appealing, as they are handled by checkout staff who have no understanding of individuals’ financial circumstances.

And setting a budget was also recommended as it is possible to get “carried away” with spending at this time of year. By doing this, “consumers can avoid ending up in the red come January,” the company said.

In addition, researching prices on the internet can help, as well as being aware of retailers opening their sales early.

This advice comes after the business’s credit cards expert Peter Harrison noted that clearing Christmas debts must be a priority as interest rates look set to increase, although recent research from moneysupermarket.com revealed that 31 per cent have no plans to pay credit card balances within the next six months.

By Sarah Adie