Christmas Budget Slashed by £1 Billion

Christmas comes just once a year, but it seems as though it has come at the wrong time for many, as the majority of Britain seems to be heading deeper into the effects of the credit crunch.

MoneySupermarket.com reveal figures which show that Brits plan on spending £1 billion less on Christmas presents this year. The average person will now just spend £376 on gifts, a drop of £17 per person from 2007. Although the credit crunch doesn’t seem to changing everyone’s plans, as consumers in Scotland plan on spending an average of £460 on gifts.

Rob Barnes, head of shopping at moneysupermarket.com, said: “Consumers are feeling the pinch this year… People will be looking for bargains and shopping around for the best deals will be a key feature of this Christmas.”

Christmas Spending on a Budget

1: Stagger your Christmas Spending– The best way to deal with your Christmas budget could be to stagger your spending. You may still have a couple of pay-days before Christmas, so try and buy a few presents out of each wage. This should take the pressure off any last-minute Christmas spending, which could totally blow your budget.

2: Be frugal with your Christmas Budget – There are so many ways which you can stretch your Christmas money management skills, it just may mean you spending a little extra time doing your Christmas shopping. A great way to shop is online, as there are a number of different websites where you can compare the prices of many gifts.

3: Be a Secret Santa – A great way to keep your christmas spending low is to start a Secret Santa scheme, you can do this at work, with your friends or your family. It means that each of you only has to buy one gift for each Secret Santa member, this also gives you the added benefit of worrying what to buy for just one person, instead of many fussy individuals.

4: Sort of your Debts– If you are having problems with your debts then you might find it is almost impossible to handle Christmas Spending chores, no matter what your budget. If you find that you are struggling meeting repayments to your creditors, then One Advice could help you to reduce this amount. We offer a number of leading debt solutions, including:

  • Debt Management Plans – A Debt Management Plan will allow you to make repayments to your creditors in one low monthly payment at a cost you can realistically afford. This is best suited to those who have debts under £12,000.
  • IVA – If you have debts over £12,000 over three or more creditors, then you could be suitable for an IVA. An IVA allows you to make affordable monthly payments to your creditors for an average period of 60 months, at the end of this you will become debt free.