This the season to be jolly ? and to spend lots of money, it would



seem. Christmas can be an enormous strain on the family budget. It's

not just presents that you have to worry about ? which itself can be a

nightmare as you battle with pressure from the kids for the latest

must-have toys and gadgets ? but also food, drink and entertainment.

It's therefore not surprising that Christmas is the time of year when

we notch up the most debt ? although most of us really start to feel

the pinch in the start of the new year when we struggle to keep up with

household bills while continuing to pay for our Christmas indulgence.

Here are some tips on how to save money and avoid debt over the festive season.

First and foremost, remember that your family and friends will be

understanding if you are on a tight budget over Christmas and can't

afford to be very extravagant. If anyone is expecting large gifts,

manage their expectations, especially kids. Let them know that Santa

can't bring everything that they want ? but that he'll bring them very

good gifts all the same if they've been well behaved.

Don't forget your normal budget ? ensure that regular household

bills are paid as usual, such as council tax, utility bills, rent etc.

Remember that your priority is to keep a roof over your head.

Work out how much money you have left to spare for Christmas

after your normal budget and set your Christmas budget.

Save small amounts regularly throughout the year. You could even

open up a bank account specifically for Christmas savings to ensure

that it stays separate from the rest of your finances and to avoid the

temptation to spend it.

Try to spread your purchases throughout the year, even as far

back as January ? you can get great bargains in the January sales! Leaving

it to the last minute means you're more likely to panic and spend more

money ? or put more on your credit card.

Don't be tempted by credit offers in shops ? this is just storing

up trouble for the future. If you can't afford it, don't buy it. Also

beware of cheap deals and rates before Christmas ? chances are the APR

will be hiked up in the new year.

If you have to get a loan or a credit card, shop around for the

best deal as you would at any other time of year, and leave yourself

plenty of time so that you don't sign up for anything in a panic at the

last minute.

Make deals with family or friends not to give each other presents,

or agree on a fixed maximum price that you will spend on each other.

Do a present exchange ? a secret Santa or a lucky dip ? with

groups of friends or colleagues so that everyone in the group buys just one

gift. It can be fun getting together to do the exchange. In a secret

Santa, everyone's names are put in a hat and each person pulls out a

name for whom they must secretly buy a present. It's quite good as you

know who you're buying for so you can get them something you think

they'll like. With a lucky dip, everyone simply buys a present that

would be suitable for anyone, and they all get put into a sack and

pulled out one by one at random.

If you can't afford to do rounds on your Christmas night out with

work colleagues or friends, just ask if you can pay for your own drinks

? they won't be offended. An even cheaper option is to go tee-total and

drive!

If you're entertaining others at Christmas, you don't need buy

and prepare all the food and drink yourself ? you could agree to share the

cost with your guests. Someone could organise the starter, someone else

the dessert, another person could bring the cheese and biscuits and yet

another could supply the drinks. In this way it can be a nice surprise

for everyone to see what everyone else has brought and you're sure to

have plenty of variety!

Look out for postage and packaging costs if you're doing your

Christmas shopping online ? sometimes this can add a lot to the price.

Try to find a site that sells what you want with the cheapest postage

costs, or try to plan your purchases and buy them all in the one order

so that you're only charged once for delivery.

Make your own Christmas cards or perhaps even your own presents

if you're the creative type ? the personal touch is often nicer anyway.

You could make up your own gift hamper, bake your own cakes or

chocolates or buy a photo frame and fill it with a collection of

special memories for someone.

Don't despair if it all goes wrong, though. There are lots of

organisations that can help you. The most important thing to do is

acknowledge your debt problem and act quickly before you get in too

deep. The Citizens Advice Bureau (www.adviceguide.org.uk) can offer

free and impartial guidance and advice, as can the government

Insolvency Service (www.insolvency.gov.uk) and the Consumer Credit

Counselling Service (www.cccs.co.uk).