Savvy money tips to avoid a financial hangover this Christmas

As pressure on people's wallets reaches breaking point, national charity Citizens Advice is distributing pocket size guides this Christmas, equipped with useful tips to help everyone avoid a financial hangover in the New Year.

Citizens Advice Bureaux always see a surge in new debt enquiries after the Christmas festivities are over. With national figures from Citizens Advice showing a year on year increase of 35% in mortgage and secured loan arrears problems, it is particularly important that consumers are savvy shoppers this Christmas and prioritise their spending. Citizens Advice is urging consumers not to forgo their mortgage payments in preference for festive expenses. The guides, drawn up with the support of Barclaycard, give ten top tips to help people to avoid a financial headache in the New Year.

John Rhodes, Head of Financial Capability at Citizens Advice said: "Christmas is a time of giving, but you don't want to give yourself a headache in the New Year with bills and debts you can't afford. It's all too easy to overspend - there are tempting offers and pressures to buy, but you must decide how much you can afford before you start spending. If you do find yourself in difficulties then seek advice as soon as possible. Make sure that you are prioritising paying the bills which keep you in your home, warm and at liberty."

The free leaflets will be available in Citizens Advice Bureaux across England and Wales as well as online at citizensadvice.org.uk/ten_top_xmas_tips

The top tips are:

Plan early for Christmas
Be realistic and budget accordingly. Work out how much you are going to spend on each person - and stick to it. Manage expectations as to what you or Santa can give.

Don't forget the everyday bills
Remember that rent, the mortgage, utility bills, food bills, council tax and other existing debts still have to be paid - and the consequences can be severe if they're not. Even though it's Christmas, get your priorities right.

Don't bank on an overdraft
If you do need more money, don't just run up an overdraft without talking to your bank first - it will work out much more expensive.

Keep things simple
If you can afford to pay for your goods outright by cash, cheque, or debit card, don't be persuaded to take out extended credit agreements unless they really do work out cheaper.

Shop around
Try as many different places as possible to find the best price. Buy what you want and not what other people say you need. Be wary of extended warranties; the cost of a repair could be less than the cost of the warranty and remember you have consumer rights to reject goods that are faulty.

Buy safe to be safe
Whatever the deal, whatever the temptation, don't buy from traders you don't trust and don't borrow from unauthorised lenders. The initial savings and convenience may prove to be a false economy.

Read the small print
Check for hidden extras in any credit agreement. Work out the total amount payable. Ensure that the monthly instalments are within your budget before signing. Interest free credit can seem attractive, but if you don't pay on time, or miss a payment, you could have to pay a lot more.

Do your own credit checks
If you are going to use a credit card, shop around and compare terms. Some cards charge high interest rates, but provide interest free periods or discounts. Budget for all these costs and put the payment dates in your diary.

Be organised
There's a lot to remember at Christmas. If you've borrowed money don't forget that it won't be long before you have to make a payment. Make sure you pay on time, even if it is only the minimum, or you will be faced with additional charges.

Start planning and saving for next Christmas
Once Christmas is over, it's worth looking at what you did well and what you didn't. Learn from your mistakes and start planning how you will do things differently next year. This might also be a good time to start saving for next Christmas.

Andrea Hughes, Senor Community Manager at Barclaycard added: "We are delighted to again be supporting Citizens Advice with the development of these tips to avoid the financial pitfalls of the festive season."