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Christmas is approaching, as are the costs

If, like the majority of the nation, you expect huge credit card bills to be at the foot of your door this Christmas and you’re wondering if can ever be avoided, then follow the guidelines below to ensure less debt and less worry this Christmas.

Christmas is probably the most expensive time in the year putting a huge strain on your wallet and in some cases your health. Everyone is under pressure to buy the best gift, probably at a hefty price. It can be particularly difficult if you have children and they all want the latest and most expensive toy which was advertised on television and because all the other kids have got them.

During this festive period, ensure you keep a firm grip on the essentials before you start your spending spree. Keep all of your priority bills up to date, including loan repayments and utility bills. Calculate a Christmas budget well in advance to stick to so you know exactly what you will be facing cost wise.

Try and spread the cost of your payments for presents over a long period of time. Avoid expensive credit offers at all costs, they may seem convenient at the time but the repayments certainly wont be so nice. Don’t keep putting yourself in more debt with nothing to show for it.

Although loans are better than credit cards be careful when taking on debt, it can be tempting to take a loan out as a spur of the moment action but make sure you read all the terms and conditions first.

Follow these simple guidelines below to limit the risks of taking on debt:

Make sure you are aware of the costs involved when taking out a loan.
Remember to shop around for the best deals.
Never take out the first loan you see. There will always be better out there.

Keep an eye on the interest rates. They may seem small but they could cost you big in the long run. The interest charges are known as the ‘Annual Percentage Rate’ or ‘APR’. This is the cost of your loan. The APR will be higher than the quoted interest rate so beware!