Advice NI urges people to act now to avoid Christmas debt

In recent months Northern Ireland has seen huge rises in the cost of living, which has led to many people turning to credit to pay for everyday living expenses. With Christmas just around the corner, we are urging people to avoid overspending and using high-interest credit to cover the additional costs incurred over the festive season.

Christmas is an all-too-easy time to overspend with many using credit cards, store cards, payday loans, buy now pay later products, and even illegal loans, resulting in hefty bills come January. With increases in interest rates, food, and energy costs, January will become a real struggle for many.

Advice NI has released a six-step guide on how to avoid getting into debt this Christmas, with tips below.

Sinead Campbell, Advice NI’s Head of Money, Debt and Quality says: “There’s pressure on people to spend more at this time of year, but with the increases in the cost of living, and the uncertainty around interest rates the extra cash just isn’t there. Many people are worried about how they will pay their mortgages, rent, heat their homes, and feed their children this year. Christmas may not be on their minds just yet, but leaving everything to the last minute leads to rash decisions that could end up costing more in the long run.

“People often have no choice but to turn to credit to pay for Christmas. However, on top of the cost of living crisis, this will only make things worse. Many will find themselves struggling to keep up with repayments, and end up spiralling further into debt.”

Advice NI’s 6 tips for avoiding debt over the Christmas period:

Plan ahead

Be honest - If after paying your regular outgoings, you find you only have money left to spend on festive food or kids’ toys, let your loved ones know in advance you won’t be exchanging gifts.

Be aware of high-interest credit

Track Your Spending

Reduce, Reuse, Recycle

Seek help Early - If you are already struggling to make ends meet or do overstretch yourself at Christmas then help is available from Advice NI.