Debt collectors' 5 tips for a cheaper December
December is a financially expensive month for most people. Christmas is just around the corner, which traditionally means buying Christmas presents and extra food - on top of the regular expenses.
Here at Collectia, we help thousands of Danes every single day with their financial challenges - and we know that December can be difficult and confusing for many when it comes to personal finances.
We've put together 5 tips for a cheaper and more affordable Christmas - and a way to start paying off your debts, even in December.
1. Shop well in advance
In December, most people do extra shopping - both for food and gifts for the family. Especially gifts are a big part of the budget.
Our advice is to shop well in advance. Luckily, December is full of deals on everything from food to electronics. Our advice is therefore that you make sure to get an overview of your needs and shop accordingly. Because if you postpone all your purchases to a specific day, it will often be more expensive than if you have shopped on offer during December.
2. Christmas presents are expensive - get a grip on them
The average Dane spends over DKK 3,000 on Christmas presents - and for many, this can be a very expensive item in the budget.
Our recommendation is that you get a handle on the gift situation. This can be done, for example, by:
- Who are gifts given to?
- How expensive gifts do you give each other?
- What can you afford within your budget
- Is there anyone who might be able to spare a gift?
Gifts are often the most expensive item in the December budget. Our recommendation is therefore also to take advantage of the many offers. Fortunately, there are many great offers in both December and January.
Get an overview of what you want to give and keep an eye out for special offers - there's a good chance you will. If you wait to buy all the packages in one day, you will rarely take advantage of the good offers.
3. Remember your electricity bill
Christmas is also the season of lights. This often means that the average family's electricity consumption increases between 20 and 30% in December - often due to our extra lighting and kitchen appliances being left on for longer.
It takes most people by surprise and can be a costly item in the budget - so make sure you pay attention to your electrical appliances in December. There could be a lot of money to be saved.
The Danish Energy Agency has more advice for those who want to reduce energy consumption in December and the coming cold months. Read the article here.
4. Make a budget - there can be money to be made
As a debt collection company, we can't say it often enough: Don't forget to make a budget!
Whatever your financial situation and whatever the time of year, it's never too late to start making a budget; it gives you a better overview, structure and insight into your finances. If you want to save money, it is important to have an overview. Such an overview can only be obtained by drawing up a personal budget. If you do not have a financial overview, it can be difficult to find the items where you can save money.
The budget doesn't need to be very sophisticated - just show your income and expenditure.
We recommend you make the budget in Excel. Start by getting an overview of your expenses; rent, electricity bill, insurance and the like.
5. Get in touch with your creditors - they will understand your situation (even in December!)
If you have debts to creditors or debt collection agencies, December is probably not the month to think about setting up an installment payment plan.
That's understandable, of course, because December is filled with a lot of other things - and debt and creditors are not high on that list.
But we think you should try anyway. For many people in debt, talking to their creditors is often uncomfortable and confusing. But give it a try anyway.
You can save a lot of money by contacting your creditors. Your debts are (in most cases) growing month by month - with interest and fees. However, if you contact your creditors, there will be a possibility of debt collection - and thus a settlement of both fees and debts.
Although December is a busy month for most people, it would be a good month to reach out to those to whom you owe money. If you don't have the money to pay off your debts now, many people will understand - and perhaps start a new year by paying off their debts.
