Not everyone agrees that Christmas is 'the most wonderful time of the year'. For those struggling to make ends meet, the costs associated with the festive season mean that Christmas can actually be the worst time.
But by taking these simple steps now you can ensure your Christmas 2012 is a happy and financially worry-free one.
Step 1 – Tackle Your Debts
If you've ever had to choose between buying a gift for a loved one or paying off part of a bill, you'll know how hard it is to be in debt at Christmas.
Rather than letting everything mount up over the year, take a good look at your debts now and plan to pay off a set amount from each of them every month. You might not clear them completely by next Christmas but you'll already be used to not having that money each month so it won't seem as hard to manage.
If you have numerous debts then consolidating the payments into one can help. If your credit score is poor, bad credit loans can be useful as the lending criteria isn't as strict. However, the interest charged will be significantly higher, so they should be seen as a last resort if you can't get a regular consolidation loan.
Step 2 – Open A Savings Account
Opening an interest-paying savings account can earn you money over the year, especially if you get one with a good interest rate. Take note of how long the high rate lasts; most will revert to a lower rate after 12 months or so.
Depositing just £10 per month into an account will get you a minimum of £120; that's if you use a regular account with no interest. Add on a favourable interest rate and your money will grow much quicker.
Obviously the more you deposit, the more you'll be left with next year. It's worth setting up a standing order for the absolute minimum you can afford, then deposit above that whenever you can.
Step 3 – Bag Bargains When You Can
You don't need to wait until Christmas things start appearing in the shops to do your present buying. There are sales on throughout the year, the January sales in particular being a great way to buy gifts cheaply - provided you've got the storage space at home!
Make a list of people you buy for over the course of the year so you don't end up buying more than you need. And resist temptation to buy a couple of gifts as stand-bys – you can always use discount sites like MoneySupermarket Local Deals if you find you've missed anyone out.
Step 4 – Food
In a similar way, stock up on food whenever you can, making sure to check the expiry dates first! Allocate a dark dry cupboard to keep your goodies in, and just add to it over the year whenever you see your usual foods on BOGOF or 3-for-2 offers.
Post-Christmas is also a good time to buy discounted alcohol and sweets to add to your stash. The prices often go up as Christmas approaches so you'll be able to make massive savings in this area if you stay vigilant!
Hopefully if you follow these steps the only thing you'll have to worry about next Christmas is whether it's going to snow!