Friday, December 4, 2009
Category:
Personal Finance Tips
According to new research by The Co-operative Bank Credit Cards, it is likely that the British population will spend their money on practical things, such as food and train tickets to visit family, during the countdown to Christmas.
It was also revealed that the majority of people will do their Christmas shopping at the ‘very last minute’, and that spending is generally at its peak in the week prior to Christmas.
Findings showed that London is home to those who spend the greatest sum of money on beauty products, clothes and flowers; whilst those in the North West spend the most on restaurants. In contrast, the Welsh were found to spend the least on beauty products and restaurants, and it was discovered that South West inhabitants spend the least on florists.
In order to financially prepare for Christmas and the New Year, The Co-operative Bank has offered four top tips. Firstly, current finances should be assessed by taking a look at debit, credit and savings accounts. Secondly, a list of all incomings and outgoings should be drawn up to determine the amount of money owed, and to thereby devise a feasible repayment plan. Thirdly, a Christmas shopping list should be written – whilst bearing in mind that a thoughtful gift is not necessarily an expensive one. Furthermore, shoppers should make the most of any offers and attempt not to over-spend. Finally, a budget should be set for the months following the Christmas period, ensuring that finances won’t be overstretched.
John Hughes, Director of Retail Products at The Co-operative Bank comments: "The research shows that despite the current financial climate people are still willing to spend large amounts of money during December."
"Every year people look forward to Christmas, but we want to remind people that it is possible to enjoy Christmas and start the New Year with their finances in the best possible shape. Often people have to tighten their belt in January due to over-spending, but with a bit of forward financial planning and a little common sense people can start enjoying the New Year with their finances in check".
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Homeowners who are looking to re-organise their finances ahead of the New Year could consider taking out a secured loan to tie up any existing personal debts. One of many finance options available, a secured loan for debt
consolidation could allow the borrower to reduce their multiple monthly repayments down to just one. Furthermore, this single monthly repayment could even prove to be lower than the sum of current monthly outgoings. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
