Borrowing cash this Christmas? Budget well

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Category: Featured

Published on Wednesday, 30 November 2011 14:43

Written by The Editor

Think Money, a leading financial solutions company, has advised people looking to spend on credit this Christmas to have a well-planned budget in place.

With the countdown to Christmas already well underway, many people will be turning to credit cards, store cards and other lines of credit to cover the cost: from gifts and decorations to food and drink.

What's more, with the base rate remaining at an all-time low for over two years, the cost of borrowing appears to be getting lower - which could make spreading the cost of Christmas on credit more appealing for some people.

However, there are concerns that people who don't have a well-thought-out budget could have problems repaying everything they owe.

An expert at Think Money commented: "Financial planning is as important as it's ever been - especially when it comes to borrowing money. Those of us who are managing well financially may be thinking about making a big purchase on credit - whether that's home improvements, a new car or a holiday. That's fine, just as long as those people have planned out a budget and are sure they can afford their repayments.

"Similarly, some people might be making a New Year's resolution to get their finances in order. For some, that might involve taking out a debt consolidation loan to simplify their finances and set out a clear plan for repaying their debts. This can be a good way of managing debt, but borrowers still need to make sure their repayments fit in with the rest of their budget."