FINANCING CHRISTMAS (From Barry And District News)

FINANCING CHRISTMAS

WE all expect to have a grand time at Christmas - but these days, that grand is likely to mean a thousand pounds. For that's what some experts say we spend on average during the festive season, once you take into account gifts, food and drink and something to wear for all the parties. If you're still shopping, try not to throw caution to the wind but instead draw up a budget and stick to it.

Keep your gift ideas as general as possible to make shopping easy on yourself, and be flexible on all but the most important items. If you and yours aren't particularly romantic about Christmas, give only token gifts on the day and have a spending spree during the sales. The good news is that some stores, keen to boost sales even further, are now starting their sales before the big day. Try to get all your food shopping in one large spree to take advantage of two-for-the-price-of-one offers at supermarkets and to pick up the maximum points on your loyalty card for savings in the new year.

It can be expensive borrowing, however, so take a look around for special deals on credit cards which give you a reduced rate of interest. Some card-providers offer cheap rates if you shift your debt to them, while others give low interest on purchases -- check what your existing card give you, and be prepared to make a move.

One of the best ways to spread the cost of Christmas is to take advantage of interest-free credit deals. There are many around, with computer companies and electrical shops particularly keen to attract trade with good deals at this time of year. To take advantage, you will need to have a clean credit history and you may, with some companies, have to be a home-owner to qualify. Feel free to haggle on the cost of electrical items - many salespeople will knock down the price if asked, particularly if you are buying several items. This can also be a good time of year to buy large items such as cars, because it is traditionally a quiet sales time for companies who are therefore keen to strike a deal. Borrowing money from your bank can offer a lower rate of interest than some credit cards, but remember you may be paying the money back for a long time. Remember too that your home may be at risk if you secure the loan on it and are then unable to make the payments - not a prospect you want to raise at Christmas. Talk to your bank manager or a financial advisor about your needs, and come up with a sensible option which you can afford long-term.

Finally, if you need household items such as extra TVs or washing machines at this time of year, you could consider renting rather than buying. This ensures low payments and also often means regularly updated equipment with free maintenance. Buying gifts is just one of the costs for Christmas, and financing the cost of the festive season needs careful planning.