Finding ways to fund Christmas

With Christmas just around the corner many consumers are thinking of different ways in which to fund the expenses that come about at this time of year. Although fun, exciting, and entertaining, the Christmas period can also be extremely expensive, and this means that you need to get yourself well organized in order to ensure that you do not fall short when it comes to finances at this time of year. There are many different expenses that have to be taken into consideration when Christmas comes around, and when you add it all up it can come to an absolute fortune. This is why it is important to make sure that you have your funding sorted out ready for this time of year so that you can concentrate on enjoying the festive season rather than worrying about money.

There are a number of different means of funding Christmas, and the route that you take will be largely down to your personal circumstances and your preferences. You will find that if you have poor credit the number of options open to you for Christmas funding will be restricted, and therefore you may face difficulties and may have to think ahead. You should make sure that you take into account the different expenses that you are likely to incur before you decide which route to take, as this will help to determine how much you need and what your best method of funding Christmas will be. Amongst the expenses you need to take into account are:

• The cost of buying gifts, wrapping, and cards
• The cost of social events such as parties, work’s events, and outings
• The cost of entertaining guests at your own home
• The cost of new clothes for the festive season
• The cost of decorations for your home
• The cost of food and drink for your friends and family over the festive season
• The cost of travelling to and from relatives’ and friends’ homes

These are just some of the expenses that are associated with the festive season, and as you can imagine the costs can quickly add up. There are a number of options available for funding these expenses and these include:

Savings

If you don’t want to get into debt for Christmas you need to really think ahead and start putting a small amount of money aside every month over the course of the year ready for December. You will be surprised at how quickly small deposits can add up, and just £20 or £30 a month in a higher interest account can help you to save a small pot ready for Christmas. You will need to be disciplined enough to do this each month and resist the temptation to withdraw the cash for other purchases prior to Christmas, but if you can put some aside each month this is a great way to save towards Christmas without having to get into debt.

You will find some accounts that offer a lump sum after twelve months of regular deposits if you do not make a withdrawals, and this is an effective way of boosting your savings and enjoying a little extra for the Christmas period providing you start saving twelve months in advance. Those with bad credit may have to rely on this method of funding, as it may be difficult to get finance such as credit cards and loans.

Credit cards

This is another effective way of funding Christmas, but you need to ensure that you make your application early on, as credit card companies are flooded with applications as Christmas draws nearer and processing times may therefore be delayed. You can get some good deals on credit cards if your credit is good, such as 0% purchase credit cards, which will enable you to spread your repayments over a certain period without incurring any interest. If you plan to repay the balance in full after Christmas is over you can opt for a cash back or rewards based card, which will allow you to earn rewards for your spending, and you can then avoid paying interest by paying off the balance in full within the interest free period.

If you have poor credit you may still be able to get a credit card that caters for those with poor credit, but the credit limit is likely to be quite low and the interest rates charged very high.

Unsecured loans

An unsecured loan is another option for those looking for ways to finance Christmas, and there are a number of lenders that can offer competitive deals on personal loans to those with good credit. However, you should make sure that you do not take out the loan for any longer than twelve months, as otherwise you will still be repaying this loan when the next Christmas comes around.