18 December 2023 , 19:15
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While we all like to over-indulge during the festive season, there's nothing worse than entering the New Year in debt. But with a bit of careful planning you could make this your best Christmas yet without breaking the bank.
Money expert Martin Lewis has warned Brits against splurging this Christmas, encouraging people to work out the best possible Christmas they can have according to their budget. The Money Saving Expert founder urged people to think about the long term and not risk getting into debt in the New Year for one day’s celebrations. And he even suggested ways you can help Christmas pay for itself.
During ITV’s The Martin Lewis Money Show Christmas Special, Martin said: Don't plan the perfect Christmas – first work out what you can afford. The right way to do this is to do a budget and work out how much money you have and then ask what is the best possible Christmas I can have on that amount of money?" He also mentioned a free MSE people can use and some tips on how to save hundreds this Christmas.
Here, we take a look at some of Martin Lewis’ best tips on how not to get into debt over Christmas, including what you could do to earn a bit of extra cash.
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Martin suggests banning those unnecessary Christmas presents that we feel we’re obliged to buy and which also make the giftee feel obliged to buy a present back. You could actually be doing the recipient a favour, especially if they are struggling with cash.
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If you still want to buy them something, keep a look out for discount and cheap, yet thoughtful, gifts such as a photo of you together.
Buy non branded
While most of us enjoy indulging at Christmas, it’s worth downshifting items as it could save you a fortune. Buy the less expensive food and drink brands - or better still ask guests to bring a dish, treat and drink to share. On Martin's TV show he held a blind taste-test for nurses at a hospital with champers and turkeys and 62 per cent of the time they couldn’t tell the difference between the expensive and cheaper items.
Switch banks to make cash
You might be pushing it to get £175 in time for Christmas but if you switch banks now it’ll be in your account in the New Year. So why not budget £175 for the big day in the knowledge that you'll have it back come January. Martin recommends because it often comes in top for customer service and new customers will be paid £175, 28 days after the switch. You have to pay in £1,000 within three months of opening and the Current Account Switch Service means you’re covered if charges are incurred on either your old or new current accounts.
Give time, not gifts
As the saying goes 'it's the thought that counts' and many people would appreciate one on one time together or a helping hand. Ideas include DIY, breakfast in bed or a free night's babysitting and you can print as many of these from the MSE website as you like.
Free cash
Consider using a cashback credit card like the Amex Platinum Everyday which is offering a 5 percent intro bonus on spending up to £2,000 up to a maximum reward of £100. After three months the rate changes to 0.5 percent cashback up to £10,000 and 1 percent above this. However, you will need to spend £3,000 per year to get any cashback.
Be inventive
Martin recommends checking out specialist online sellers, rather than department stores, if you’re looking for products like perfume as they offer fragrances for a fraction of the price. Or you can buy cheaper unboxed bottles and wrap it yourself. The MSE forum has a cheap perfumes guide and is also full of tips on how to pick up some of the best dupes with some on offer at Poundland for just a quid.
Shop around
The MSE deals team found that is the most consistent search engine when it comes to finding products at the cheapest price. Google Shopping searches a host of retailers, including Amazon, Currys PC World, John Lewis and Tesco. Don’t forget eBay either as sellers get less bids if they want items collected in person. Check out MSE's for more help getting a bargain.
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