Don't Scrooge up your finances this Christmas

Last year the average consumer spent 11% more on credit cards and 25% more on store cards than they spent during the other 11 months of the year, according to research from the Finance & Leasing Association. Latest figures from the FLA back this up with a small increase in store card use.

With this in mind, the Finance & Leasing Association and the Consumer Credit Counselling Service have today advised consumers to think carefully about their spending this Christmas.

Some top tips:

Keep a clear head - plan what you are going to spend and stick to it. Work out how many presents you need to get, and how much you can afford to spend.

Remember that presents are only the starting point; be realistic about the costs of food and drink, cards, wrapping paper and the other festive expenses.

Try to pay for as much of Christmas as you can using debit cards or cash.

If you do need to use credit, shop around for it, just as you would for presents. Make sure you are getting the best deal.

And after Christmas:

Don't forget that a lot of bills will come through in January - and not just from your lenders. Make sure you keep some money back to pay them.

If you took advantage of buy now, pay later offers, organise your finances so that you can make the contracted repayments when they fall due.

Talk to your lender at the earliest opportunity if you think that you might miss making a repayment on a credit card, store card or loan.

Try and pay off as much of your cards as you can each month. Aim to clear your Christmas spending by March.

Plan for next Christmas. If your planning worked this time around, do it again. If it didn't, what went wrong? If you can, start saving now - shopping in December will be worry free.

The FLA's Fiona Hoyle said: "Christmas can be a tough time, make sure money isn't one of your worries. Take stock after Christmas - if you're not going to be able to repay your debts, talk to your lender as soon as possible. They can't help if they don't know there's a problem."

Malcolm Hurlston, CCCS chairman, said: "Every year, demand for our helpline increases in January and February as Christmas spending proves the straw that breaks the camel's back. Making a budget for Christmas is good financial sense, especially if money is tight. Make sure that you're not haunted by the ghost of Christmas credit."