08 Dec Staying on top of your finances this Christmas

With Christmas around the corner, everyone is busy getting festive, stocking up on what they need, planning on parties and nights out and buying plenty of Christmas gifts for friends and loved ones.

Hopefully this Christmas will be a normal one unlike last year, which is why potentially people are trying to make it extra special.

However, it is really easy to overspend at Christmas and cause yourself to financially struggle. This can potentially be bad for your mental health but also your longer term financial plans.

If you are planning on applying for a mortgage in the New Year, we would recommend that you try and restrain your spending over Christmas and ensure that all bills are paid and you aren’t over spending. Mortgage lenders will look at bank statements in detail, so it is important that these statements look as healthy as possible.

The majority of employers pay early in December to ensure that payroll is done before the long Christmas break – whilst this is great to make sure you have enough cash for last minute presents and parties, it does make January a very long month and this in itself can be a real struggle for many households.

Tips to stay financially healthy this Christmas
Plan your money – ensure all bills are paid or the money is allocated and put into a separate account if needed to make sure the money is available when the bills are due. January is a long month with an early December pay day, so it is prudent to take a little time to manage your money and account for all the monthly outgoings.

Save money and stay home – if you are saving money for a mortgage or you are worried about overspending, stay home! We understand people have had enough of staying home due to the pandemic, but you could invite some friends, share the cost of food and drinks and have a great night catching up at home; if you are looking for some games to play, we particularly like Scotland Yard, Uno and Cards Against Humanity!

Put a cap on spending – when buying gifts for others, consider putting a spending cap on. Although the conversation may be a bit awkward, especially if you haven’t had it before, we think most people will be very understanding and receptive. The cost of a lot of things have increased during the pandemic and many people will be watching the pennies. Capping the cost of gifts with friends for example to £20 can be affordable and a stress free way to gift this year.

What about my credit score?
Although your credit score is important, many lenders use different credit score providers and each have their own metrics, scores and results. It is far better to ensure all bills are paid for, no payments are missed and you are not overspending and stretching yourself too far financially.

When you are ready to look for a mortgage in 2022, get in touch with the team here at Best 4U Mortgages – as a broker, we can make sure you have all the documents ready and your finances look as healthy as they possibly can.

Telephone: 01536 411 144