Festive period can lead to some financial headaches

WHILE Christmas is the season of goodwill and festive cheer, for many people it’s also a time that plays havoc with their finances.

This is often a period when money problems come to a head and a financial headache can be particularly distressing when you’re trying to spend time with family and friends.

The Financial Ombudsman Service, which resolves disputes between consumers and firms, has compiled some tips to help people make it to the New Year without breaking the bank.

Christmas can sometimes feel chaotic, so it pays to spend a few minutes jotting down your outgoings to make a realistic budget. The figures may look daunting in black and white – but doing this should help you manage your finances effectively. Having a list of what you need to buy could also make it easier to make the most of special offers and stop you going overboard by buying last-minute ‘bargains’ you don’t really need.

From presents for the kids to the ‘big food shop’, it can seem like cash just evaporates from your wallet at Christmas. The promise of some quick and easy cash might seem like the ideal solution, but take care when signing up for any loan, and make sure you can afford to pay it back.

Whether you’re braving the high street or avoiding the masses by shopping online, take some time to do your research and have a mooch round. Look for discounts and voucher codes, and also read reviews to check the quality of what you’re buying. And if you take out a store card, remember that interest charges can be high if you don’t clear your balance in full each month.

It might seem a bit early to think about saving for the year ahead, but putting away regular amounts each month could take the sting out of next year’s shopping bill. An ISA, with its tax advantages, could help you to do this, but check with the provider how long any headline-grabbing interest rate will last.

If you’re thinking of buying a large gift, using interest-free credit could save money by spreading the costs. But make sure you know when any interest-free period ends as interest rates can be high if you miss the deadline.

Check your home insurance policy covers any high-value gifts sitting under the Christmas tree, such as jewellery and gadgets in case theyYou might find you’re not fully covered if these items are stolen or damaged.

If you’re having trouble meeting your financial obligations, contact your bank or lender straight away for help.

:: 3 French holidays If you get stuck with a financial problem and you cannot come to an agreement with a financial firm, the Financial Ombudsman Service can help on 0800 0234 567 or by tweeting @financialombuds.

The financial ombudsman service has a video with financial tips at Tiny.cc/Ombudsman.