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  • Writer's pictureEvery Little Thing

How to Simplify Your Christmas Finances and Avoid Debt This Christmas

The holiday season is meant to be a time of joy, laughter and togetherness. However, for many, it becomes a season of stress and financial strain.

According to recent statistics, 50% of Christmas shoppers either overspend their budget or don't set one at all, with 28% still paying off debts from the previous year's Christmas shopping.

This blog post aims to provide practical tips on simplifying your Christmas, focusing on setting realistic budgets, managing finances wisely, and enjoying the true spirit of the season.


The first step to a stress-free Christmas is setting boundaries on your spending. Know your financial limitations and develop a budget for the season.

Write down a budget that includes, gifts, food, drinks, decorations and outings and events. Whether you prefer using and app, spreadsheet or pen and paper, keeping track of the costs of Christmas will help you stay within your limits.


Challenge the social pressie to create the perfect Christmas by giving yourself permission to spend less and do less. Remember that money doesn't equate to love, and expensive gifts aren't a requirement for showing affection.

You dont always have to buy new - look for gently used, like new or new in box items on sites like Vinted, eBay or Facebook marketplace. Better for your bank account, and the environment.

By reducing your gift budget, you'll free up mental and emotional capacity to truly enjoy the holiday season.


If it's too late to implement these strategies this year, start planning for next. Set up a Christmas savings pot, allowing you to accumulate funds throughout the year. This proactive approach ensures you won't be caught off guards when the festive season arrives.

Keep your Christmas money separate from your regular spending. That way you won't be tempted to spend it on other things.

Throughout the year, save points earned from club cards and store cards to put towards Christmas spending.


Make a list of everyone you want to buy for, including last-minute gifts, stocking fillers, teachers' gifts and any planned gatherings. Prioritise your spending by allocating the amount you've decided to spend to each person or activity on your list. This way, you focus your resources where they matter most.

It's okay to prioritise gifts for your kids, partner and immediate family first.

Each person, and each family is unique. Buck the comparison trend and create a Christmas season to fit you and yours. Start with a Christmas budget that works for you right now. A number that you can afford and are willing to spend now - not a number you want to spend.


Consider using cash to prevent overspending and impulse buying. A prepaid debit card can be a practical solution for online shopping. Nothing sows running out of money like an empty cash envelop or a declined prepaid card. It's a simple way to avoid overspending

Try and avoid using credit cards wherever possible, but If you do need to use them, track your purchases and pay them off as soon as you possibly can out of your Christmas budget.

Stick to your list and be wary of sales and offers that can tempt you into unnecessary purchases. A little bit of extra money here and there soon adds up.

Be mindful of spending based on your emotions. We try to justify financial decisions with our emotions. Those things that tug at your heart because they would be the perfect gift - even though they cost too much. Stick to your list, and if you really struggle with impulse buying stay out of the shops as much as possible and buy online.


The pressure to create the perfect Christmas is fuelled by societal and media expectations.

Challenge this trend by simplifying your festivities if you feel overwhelmed by it all.

You don't have to spend what you can't afford and push yourself unnecessarily.

Remember that the magic of Christmas lies in spending quality time with loved ones, not in accumulating debt to meet unrealistic expectations.

This Christmas, embrace simplicity and prioritise what truly matters - quality time with loved ones. By setting clear budgets, avoiding unnecessary debt, and redefining the meaning of gift-giving, you can enjoy a stress-free and joyful holiday season. Remember, the magic of Christmas lies in the moments shared with family and friends, not in the price tag of the gifts under the tree.

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