Yahoo Finance 
What to do if you are feeling anxious about money in the run-up to Christmas
Christmas is the most wonderful time of the year, but for some, overspending can be particularly challenging whilst in pursuit of the 'perfect Christmas'. And typically, it's not until January that households come to grips with the extra borrowing and debt over the holidays, which can lead to anxiety, stress and sleepless nights.
Previous research conducted by Money Advice Trust found that five million Brits already suffer from money worries in the run-up to Christmas, with many turning to their credit cards as a means to pay for Christmas presents, food, and more. Sadly, on the back of this, the study also uncovered that three million people find Christmas less enjoyable because of the financial pressures.
If your financial situation has changed as a result of the pandemic this year and you're feeling anxious about spending money at Christmas, here's some advice to help...
1. If you haven't already, set your festive budget
Take control of your finances by setting a realistic budget of how much you want to spend — and stick to it. Include items such as food, presents, decorations, transport, plus anything else you may have to pay for. If you have a large family, set a budget for each person; this will make present-buying easier and help you not to overspend.
'We're probably all expecting Christmas to feel quite different this year. If you haven't already, work out what you can afford – this may be different from previous years,' Nick Hill, money expert at the Money and Pensions Service, tells House Beautiful UK.
'The Money Advice Service website has a free budget planner tool which can help you get started.'
2. Shop around for last-minute deals
You'll find plenty of good deals around at Christmastime. Shop around on comparison sites to get the best price before settling for the first item you see. Often, in the lead-up to Christmas, many retailers offer discount deals, so it's worth comparing what you see.
HB's festive tip: If you're not seeing a friend until after Christmas, get them a present in the sale to save some extra cash. Gift sets, whether beauty or toys, will always be discounted on December 26th, so it's worth waiting.
3. Be honest with those around you
The pressure to keep up with Christmas can be overwhelming, as well as pressurising. If you are struggling to afford presents, the best thing you can do is be honest with those around you.
As you begin to analyse your budget, work out what you can realistically afford. If buying presents for every extended family member seems a little unattainable, suggest something such as Secret Santa — that way you only have to buy one gift, but no one loses out.
4. Ban unnecessary gifts
Don't buy presents just for the sake of it. Over the years, Christmas has become a retail festival: one where many of us buy unnecessary gifts that people don't really need or want. Save money —and time — by cutting out presents people won't use.
HB's festive tip: If you don't know what to buy someone, an experience always goes a long way. From afternoon tea to sightseeing, gifting experiences (try Virgin Gift Experiences, Red Letter Days or Buyagift) are far better than more 'stuff' none of us need.
5. Ask for expert help
Asking for help isn't a sign of weakness. If you are worried about debt or bills you can't pay, speak to the experts who can point you in the right direction. Whether you've lost your job this year or have struggled to find new employment, remember that it's OK to ask for help.
'If you're struggling to manage debt, seek free debt advice as soon as possible. It's always best to talk things through with an experienced debt adviser before you decide how you're going to pay off debts,' Nick Hill tells us.
'More than eight out of 10 people who have sought debt advice tell us they feel less stressed or anxious and more in control of their life again. The Money Advice Service's free tool will help you find advice in a way that works for you.'
Find the right expert by using this free Debt Advice Locator tool. You can seek help by contacting these services below:
Call Money Advice Service on 0800 138 7777 from Monday to Friday, 8am to 6pm
Call National Debtline on 0808 808 4000 from Monday to Friday, 9am to 8pm
Call Step Change Debt Charity on 0800 138 1111 from Monday to Friday, 9am to 5pm.
6. Sort out any debts
The New Year is just around the corner, which means it's ideal to sort out any debts you may still be feeling anxious about.
Nick Hill explains: 'Lots of us have experienced a change in our finances due to coronavirus and some people will be feeling anxious about bills piling up. The important thing to remember is that you're not alone and free help is available.
'If you have loans, see if you can begin to pay those off starting with your most expensive debts such as credit card bills, followed by smaller debts. Once you've cleared these, try setting up a standing order into a savings account to ensure you're regularly putting money aside to cover unexpected costs.'
7. Start saving early for Christmas 2021
It might seem like a long way off, but tucking a little away every month for Christmas 2021 is a smart way to avoid getting into debt. Struggling to save? This clever 1p challenge, also known as the penny challenge, works by putting a certain amount of money into a jar for 365 days, enabling you to save more than £650.
Starting with just one penny, each day you increase the amount of cash you drop in by 1p and it won't be long before your jar has all the spending money you need for Christmas 2021.
12 Days of Christmas Wellbeing: boost your mental wellbeing, take joy from the small things, and create a happy home this festive season.
Like this article? Sign up to our newsletter to get more articles like this delivered straight to your inbox.
In need of some positivity or not able to make it to the shops? Subscribe to House Beautiful magazine today and get each issue delivered directly to your door.
You Might Also Like
