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That’s another Christmas done, and some of us will be preparing to go back to work while juggling the kids during the remainder of the school holidays.
But Debtfix chief executive Christine Liggins says it is also the time when many people start worrying about money – and they are not alone.
“Concern about personal finances is now considered to be the biggest impact on New Zealanders’ mental wellbeing,” Liggins says.
“The Christmas summer holiday season is one of the most challenging times of the year, but there are some things people can do to avoid a debt hangover in the future.”
• Start a Christmas savings account
Put a small amount of money into a Christmas savings account each week, fortnight or month. It is easy to set up an automatic payment to transfer the funds into the Christmas account – $10 a week will be about $500 after a year and can be used just for festive fun.
• Get into the nitty-gritty of expenses to create a budget
It can be difficult knowing where your money goes, especially living in a cashless society. When working out a budget include paying off debts and remember to allow some money for other expenses like haircuts, insurance, car repairs, medical care and even date nights.
• Stop one unnecessary spending habit
If a debt-free Christmas is important to you, what could you give up that isn’t as important? Maybe stop having takeaways or buying limited edition sneakers, and spend your money on a cheaper option instead.
• Pay all bills on time
Set yourself reminders to pay your bills on time or set up payments in advance with online banking to avoid late payments that incur penalties. Being stung by late fees is frustrating, especially when you can make the payment but simply forget to get that job done.
• Ditch one subscription
Is there one subscription you could live without? Maybe give up Netflix, Spotify or Audible and that small monthly fee could go towards preventing an end-of-year debt disaster.
Liggins is also reminding people feeling stressed or anxious about their financial situation that getting help sooner rather than later will help.
“There’s always a way to sort out money problems – there are numerous solutions to solve problem debt, and the sooner people reach out to us or their local budget service, the better off they’ll be,” she says.
