Are you feeling the post-Christmas financial blues? You're not alone! With the average household spending an estimated €1,163 over the festive period, many of us are left with a financial hangover that lingers well into the new year. But here's where it gets controversial... While some may have used savings or even borrowed to cover Christmas costs, others may have turned to credit cards or buy now, pay later services. And this is the part most people miss... The key to avoiding the same mistakes next year is forward planning and taking control of your finances. So, let's dive into the numbers and explore some practical tips to help you sort out your finances after the holidays. How much did you spend? Christmas was pricey no matter your household type. According to the CCPC survey, those without children anticipated spending the least, at €995, while households with children under 18 topped the spending table with an estimated €1,600. Those aged 45-54, the sandwich generation, spent an average of €1,465. How did you pay for it? Most of us likely used savings, but higher-income households were 10% more likely to do so. Almost one in five of us said we'd use some form of borrowing, including bank or credit union loans, credit cards, overdrafts, or buy now, pay later services. Those aged 25-34 are the most likely to use buy now, pay later services. Sort your credit card If you put Christmas on the credit card, try to get on top of it now. Check your statement or ask your bank when payment is due, and try to clear the balance before then. By paying it off in full before the due date, you won't be charged interest on your purchases. Clear the bill when you get it, or get as close to clearing it as you can, as soon as you can, says the Money Advice and Budgeting Service (MABS). Even paying off part of your bill before the due date is better than paying nothing, but part payment still means charges. The bank will charge interest on any unpaid balance, and add that charge to your balance. If you don't pay off that balance, you'll pay interest on your interest. Aim to clear the balance in full, or as close to that, to avoid interest charges. Buy now, pay later If you used buy now, pay later services for Christmas shopping, get out your calendar. In the case of Klarna, for example, if you have sufficient funds in your account to meet the instalments as they fall due at 30 and 60 days, you won't pay any fees. But if you miss the payment at 30 days, you'll get a few days' grace to update your payment method or add sufficient funds. If you can't, then your loan is in default, and you'll be charged a late fee. The full unpaid amount and charges will be rolled over to the next and final instalment. So, check your instalment dates and set a reminder in your phone to make sure there are sufficient funds in your account. Saving Christmas Of those who save to cover Christmas, two in five set aside a little bit of money every month throughout the year, according to the CCPC research. A quarter start saving between July and September, and a third between October and December. Putting €97 aside each month last year would have covered average household spending for Christmas just gone. But with cost of living increases, that wasn't going to be possible for everyone. Once you've cleared any debt hanging over from this Christmas, putting even a small amount aside each month can help avoid financial pressures next year. Tune into supermarket reward schemes now too. If you earn reward points through your usual supermarket shop, keeping them for Christmas can be a pain-free way to save. So, if you have a supermarket loyalty card, don't forget to swipe it at the checkout every time, as the rewards may add up to some cheer later this year. Some retailers such as Aldi and Lidl have launched savings cards enabling customers to save their deposit return scheme refunds to a store card. This enables you to keep all your refunds in one place, and can be a convenient way to save money towards future planned purchases.
