I read a really interesting article this week from the Energy Saving Trust that said that a tenth of UK households are still paying off debt from Christmas 2015! Are you in a similar position?
It is estimated that British shoppers spent more than £40bn in December alone, I know I definitely contributed to that total but I also manage to do a lot of my shopping early and saved a fortune as a result. If you follow my Facebook page I hope you managed to grab a few bargains but a few more pointers on how to save money can’t hurt! To try and help you out I’ve worked with the team at the Energy Saving Trust to put together a simple guide on ways to save money both on the high street and also at home!
Aled Stephens, an expert at the Energy Saving Trust, said: “Festive debt is a big headache for the UK and one that lasts for months. More than one in ten households are still paying for 2015’s celebrations and will now have 2016’s debt to worry about.
“Worse, a quarter of us have used credit to finance Christmas, which could incur especially high-interest rates and could cause a vicious cycle of debt.
“By producing a simple guide, we’re aiming to help people dodge the debt trap and get themselves into a place where Christmas becomes a celebration instead of a chore.”
The UK-wide study of consumer spending habits revealed that 31 per cent of people would sacrifice entertainment – such as eating out or trips to the cinema – throughout the year to pay for Christmas, while nearly a fifth (18 percent) of us would sell items on eBay. Sixteen per cent would turn down the heating, with a further five per cent turning it off completely.
Speaking for myself I was one of those people that would put Christmas on a credit card because I thought I didn’t have the means to do anything else. Now I am more financially savvy I have realised there are so many other options – if only I had known about them sooner. For the last few years, I have started the New Year with no debt and it is the best feeling, just by following our simple tips you can do the same.
So how can you make Christmas more affordable?
1. Shop the sales. It’s never ‘too early’ to start shopping for Christmas. Pick up gift sets that have been heavily reduced, sometimes by 75%, and put them away. They will come in handy for relatives and friends.
2. When catalogue stores refresh their catalogues, they discontinue many products. These products then go into a huge clearance sale. You can pick up toys, jewellery, electricals and homeware with huge discounts. One of my best buys was a £20.99 board game reduced to £1.99.
3. Try and round your grocery shop up to the nearest £10 and put the rest of the balance on a supermarket gift or savings card. This will help you spread the cost of the Christmas grocery shop across the year.
4. Enter as many competitions as possible. Someone has to win, why shouldn’t it be you? The prize can then be used as a gift at Christmas.
5. Haggle. Yes, really! It’s so easy so don’t be put off. Just explain you’re on a budget so is there any way you could get it a little cheaper.
Saving money isn’t just about grabbing a bargain, with some effort around the home you can save £££’s a year:
1. Switch energy provider. It takes minutes but could save you £300 each year – enough to pay for a few presents or even the turkey.
2. Draught-proof windows and doors – your house will stay warm for longer and pesky draughts won’t creep in. You could save up to £35 every year.
3. Insulate your loft and walls. Insulating an uninsulated loft could save you up to £140 every year. Depending on how your home’s walls are constructed, you could save £155 to £260 per year by insulating them.
4. Don’t have a room thermostat or thermostatic radiator valves? Install them and you could save between £75 and £155 every year. Already got them? Turning down your thermostat by just one degree can save between £80 and £85 per year – but your room should be between 18-21 degrees when occupied.
For further information, advice, support and advice on how to make your home easier and cheaper to heat and run, visit energysavingtrust.org.uk.
