By Beth Stitely | Posted: Sunday November 15, 2015
This is the time of year when many families overspend and end up in financial debt. Oftentimes the true realisation of their situation comes too late as fees and interest have already accumulated. Anglican Family Care’s Budget Advisor, Fiona, says that families can stop the cycle of debt and have a more enjoyable Christmas.
"I see a lot of clients getting into financial trouble at this time of year,” says Fiona. “They then come to our service in February when the credit card bills start to come in.” She sees the stress families experience because of holiday expectations and understands that it’s easy to commercialise the season. “Some families are feeling the pressure to buy extravagantly for their children or to make that big Christmas meal.”
But there are measures that can be taken to avoid the pitfall of holiday debt. Budget advisers say the key is to make good plans. “Plan ahead as to how much you want to spend. Start saving money as soon as possible by setting aside a little bit each week. Over time that money builds up and then you can purchase affordable gifts.”
Fiona has seen many of her clients make a turnaround. She specifically remembers one client whom she worked with for about a year. This client was able to pay off her debt and start the habit of saving money. “This was the first time she had a savings account. She was so happy,” says Fiona. In the end, her client had stopped asking for emergency assistance and became more financially independent. “Having a budget and sticking to it worked for her. She was amazed she could buy things when she needed them and always kept an eye out for the sales. It changed her life.”
The goals of the budgeting service at Anglican Family Care are to enable families and individuals to live on their income, to pay off debt and to save for the future. If you find yourself in financial stress, get in touch with the budget service at Anglican Family Care to help you complete a budget.
To learn more, please visit our website at www.anglicanfamilycare.co.nz or call 03.477.0801. All our services are free and voluntary.
For more budgeting tips and resources visit http://www.familybudgeting.org.nz/
Tips for An Affordable Christmas
· Plan Ahead. Buy items when they are on sale and don’t wait until the last minute to make purchases.
· Put aside money for Christmas each payday.
· Make a budget, including how much you want to spend on gifts.
· Buy second-hand or make your own gifts. Give a ‘personal’ voucher for something you can do for someone (child watching, washing car, garden clean-up, etc.)
· Avoid borrowing or using a credit card.
· Be realistic about food and drink for holiday meals.