With the holiday season upon us, many of us are thinking of which gifts, décor and outfits to buy. We end up overspending by not keeping within our budgets. Despite the joy and excitement of the holiday season, we need to keep in mind what we need to pay for in the New Year.   Here are a few tips to help to avoid entering the New Year over-indebted:  

1. Create a list

• Create a list of items you need and want for the holiday season
• Prioritise the items that are important
• Make sure that you stick within the allocated amount for those items

2. Compile a budget

• Draw up a budget for the holiday season
• Draw up a budget for January – school fees, uniforms, stationery, transport costs, etc
• Don’t neglect any debt that you are paying off
• Keep a record of your expenditure to ensure that you keep on track

3. Use a debit card or cash

• Avoid using your credit card during the festive season
• Rather pay for items using your debt card or cash
• Shop around for the best prices for items to ensure you do not overpay for them and ask for cash discounts

4. Minimise or limit buying – try DIY

• Instead of buying expensive new gifts for family and friends, consider gifts that you can make yourself for  much less
• Make your own Christmas cards and envelopes

5. Don’t forget to save

• If you will be receiving a bonus, use it to pay off debt and save a large portion of it
• Did you know that most schools offer a discount of usually 10% if you pay the annual school fees in full at the beginning of the year?
• Consider using your bonus to cover January expenses such as school fees, stationery, school uniform, etc
• Take a portion of your bonus to treat yourself and your family for the hard work you have put in to 2014

Sources: Debtsafe