However, people can still enjoy the day without overspending and getting into any debt. With four weeks until Christmas, it may be the perfect time to create a plan to try and limit as much overspending as possible.
Norton Finance recommends that people should take a realistic look at their financial situation and establish an amount that they would be comfortable increasing their spending by.
He said: “Most of us increase our spending for Christmas, but it’s best not to be too drastic.
“By aiming for modest increases of 15 percent or less, you can still give yourself flexibility for the festive season without limiting other areas of spending.
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“If you don’t have savings set aside and need to borrow to meet the extra costs, it’s important to decide at the outset what you think you can afford, and how long you’re prepared to take to make any repayments.”
If people do need to borrow, Paul suggested using fixed-term loans, rather than credit cards or payday loans, which are cheaper to use in the long term.
He said: “If people do need to borrow, it’s worthwhile shopping around for loans that have repayments suitable for your situation.
“Also, it’s a good idea to think about consolidating your debt into one loan, to make it as cheap as possible.”
He said: “Treat yourself like your own business.
“Regularly reviewing your finances will help you stay on track with expenses in the weeks and months to come.
“If it looks like you might still go over budget, make changes to reduce non-essential spending.
“Is there a direct debit you can cancel? Or a membership that you no longer use? Start there.”
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