Money Saving Tips to Avoid Over-spending on Christmas Personal Finances | Finance

0 spoke exclusively with Jonathan Corner, the co-founder of Ilumoni, on how to manage debt during the Christmas season and beyond. Brits need to understand the importance of budgeting around Christmas time, as it is a good way to avoid overspending.

Plus, another tip for Brits is to know exactly how much debt they have. There is no point in sticking your head in the sand and waiting until after Christmas to assess the damage.

Jonathan continued: “83% of UK borrowers think they are making good decisions about their loan product choices, but more than half are not happy with the way they handle their borrowing.

“Make sure it’s not you by really putting yourself in the shoes of your debt – know what you owe, how much you are paying off, and most importantly, how much it is costing you in interest. “

When in debt, people have to consider all of their options. Even with the best of intentions, Christmas can still be a “drain on resources and it’s hard not to feel that pressure.”


It is important that people know how they are borrowing and how they can pay it back.

The way people borrow could mean switching to cheaper products to which they are entitled.

For example, if someone has multiple credit cards with different interest rates, they may want to consider consolidating them into a single low interest loan.

Jonathan suggested to those who decide to do so to “make sure you can afford the repayments and be careful not to go into debt again elsewhere.”

Alternatively, he suggested that people might be able to make a balance transfer to a zero percent credit card, or a card with a lower interest rate than they’re currently on.

Second, the way you repay could mean fixing your repayments at the current figure, rather than paying only the minimum.

Jonathan said: “You would be amazed at the difference this can make. For example, if you had a credit card debt of £ 4,476 at an APR of 21.9%, your next minimum payment would be £ 119 (assuming the terms are 1% of the balance plus interest or £ 5, whichever is greater).

“If you keep paying the minimum, even without additional borrowing, it would take 30 years and 10 months to pay off and cost £ 7,125 in interest alone.

“But, if you set your repayments at £ 119, you would lose 25 years and nine months of total repayment time and save £ 4,513 in interest (provided you don’t continue to borrow).”

Plus, the debt isn’t just for the Christmas season. More than one in five UK borrowers say they usually buy something on credit and wonder how to pay it off later, and more than a quarter typically feel guilty or regret buying on credit.

Jonathan urged Britons to shop around and compare terms if they need to borrow. Some cards may charge high interest rates, but offer interest-free periods or discounts, for example.

He continued, “Budget for all of these fees and jot down the payment dates in your calendar.

“Taking control before Christmas doesn’t have to make you a Scrooge and by the time the New Years resolutions roll in, going into debt will no longer be a part of it. “

Brits can also use apps to help them stay on budget during this festive time.

While there are no “quick fixes” when it comes to paying off an existing debt, by taking the time to understand a person’s expenses and borrowing, they will be able to make the best possible decisions. decisions for herself and her situation.

Jonathan concluded, “It doesn’t have to be time consuming or hard to improve your borrowing – apps like Ilumoni can do the hard work for you, providing personalized and actionable insights.

“So you can continue with Christmas preparations and enjoy the holiday season. “

Fintech ilumoni was founded to help millions of people borrow well, saving on unnecessary interest payments and paying off debt faster.


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