January is often a tough month financially. Many of us overspend in December no matter what our budgets are. The endless nights out, friends over, food and drink consumed. It soon makes us reach that bit further into our pockets. Many prop themselves up over December and January with credit cards.
Research suggests the average British family spends £35,000 on Christmas across their lifetime. Of this £2,494 is interest alone, according to an analysis from ClearScore and economists, Cebr. Whilst we all want to give our families a wonderful festive season it is not good if we are paying it off all year. Christmas always falls in December and it always falls on the same date so it should not catch us by surprise! We know it is coming and therefore if you choose to pay for Christmas on credit – aim to pay it off as soon as possible. otherwise you are paying it off long after the batteries have died inside the toy!
Failing to pay it off damages your credit score and can make the next years borrowing more expensive.
Justin Basini, CEO and founder of ClearScore said, “Across our lifetimes we devote more than an entire year’s salary to the cost of Christmas. Inevitably, most of us use credit to help fund the festive period, so it’s important to keep your credit score high to avoid paying over the odds.”
Justin’s six tips to improve your credit score:
By actively managing your credit score, you will boost your chances of reducing your Christmas debt:
- Sign up to see your credit score. You can get can your free score and report at ClearScore and track your progress using our Timeline.
- Check your report thoroughly, regularly and always before applying for credit. Report and correct any mistakes you see as this could be damaging your score.
- Make sure that your bank and any credit providers have your correct address.
- Ensure you’re registered on the electoral roll – this is a very simple way of boosting your score.
- Make sure that your name is on some utility accounts – the greater the evidence that you borrow and repay your credit regularly, the better your credit score will be.
- Your score will increase if you use a smaller percentage of your available credit limit.
For more information and tips on how to improve your credit score, head over to ClearScore.com.
Also look at other ways to save for Christmas in advance.
- It is not too late to start the Affordable savings challenge with Cass from frugal Family.
- Try having one of those money saving tins you have to open with a tin opener. I’m putting in every two pound coin I get. I cannot wait to see how that will mount up.
- Buy throughout the year starting with the January sales. We are just getting to my favourite bit which is the Boots and Accessorize 70% off sale.
Pin for Later