Have your homemade Christmas cake…

…and eat it!

With the average cost of Christmas nearing £400 per person, some reports suggest that despite the recent ‘credit crunch’, spending may not slow down as much as was previously expected.

DIY Christmas

However, when the late January and early February bills fly through the letterbox, will you be wishing you’d managed your Christmas budget better?

One way to prevent this from happening to you, is to see how much cash you could save with a little ‘Christmas Do-It-Yourself’. Here are some simple money saving tips to go into your ‘Christmas hamper’ of gift ideas that could save you a fortune:

Cooking, Baking – cakes, mince pies, Christmas puddings

Preserving – pickles, chutneys, jams

Brewing – homebrew (beer or wine)

Knitting – scarves, gloves, hats, baby clothes

Crafts – Christmas cards, Christmas tree decorations

Gardening – Christmas wreaths

Christmas Day

With over a month until Christmas Day, there’s still plenty of time to get busy doing some or all of the above.

When you’re ready, put your homemade ‘Christmas fayre’ in a cheap and cheerful wicker basket (Wilkos are good for these), and give to your loved ones as a Christmas hamper. To make the finishing touches, visit a local florist and buy some cellophane, ribbon and small gift card to cover and decorate the basket.

If there’s any money left, why not spruce up your Christmas surprise with a decent bottle of wine, although, by the time you’ve put all this together, you may consider drinking it yourself!

For further ways to budget for Christmas and to get general advice on your household expenditure, have a look at the Payplan Money Saving Tips section, or for debt and budgeting advice submit your details online through the Payplan debt assessment.

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Is your family budget running on empty?

The AA has stated that the average unleaded petrol price has now risen above £1 per litre.

As Christmas approaches, fuel retailers are predicting further increases of at least 3p per litre, which could hit stretched UK family budgets hard by an extra £15 per month. The recent escalation of fuel costs is as a result of oil prices rising to near $100 barrel and recent government tax increases.

Supermarkets

Motoring organisations fear that the last refuge for cheap fuel, the supermarkets, may no longer be able to keep their prices below the £1 per litre barrier. Until now they have managed to do so.

If you have been left stranded by the recent hike in petrol prices then you can find filling stations selling the cheapest fuel where you live here.

Alternatively, if you require debt and budgeting advice, then call Payplan free on 0800 280 2816 or use their debt assessment to submit your details online.

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Award nomination for Payplan client

Payplan client, charity fundraiser and Multiple Sclerosis sufferer Karen Mascoll has recently been shortlisted for the ‘Croydon Charity Champion 2007′. This follows one of the proudest moments in her life when she completed the London Marathon in April to raise money for charity.

Wife of Gary and mother to Tabitha and Rebecca, Karen was diagnosed with Multiple Sclerosis (MS) in 1998 and has since become an active fundraiser for charities such as the Multiple Sclerosis Society.

Financial problems

Whilst Karen is clearly an exceptional individual, she was forced to seek debt advice due to the changes in her circumstances. This is far from unusual.

Her diagnosis with MS initially caused, quite understandably, extra spending on days out with her family. She also bought a dishwasher to help with the difficulties of living with the disease. However these costs were met courtesy of her credit cards.

“I was kidding myself that we could afford it.”

To make matters worse, the survey on the new family home showed several outstanding remedial works including fixing the roof and rising damp. The family felt it made sense to re-decorate at the same time and so Karen remortgaged to provide the cash to make the improvements.

Budgeting at Christmas

It all came to a head one Christmas when Karen was frantically juggling money and paying off one credit card with another.

“I worried about money all over Christmas and realised that I had to face things.”

She realised that she needed help and approached a debt company that advertises on the television, but was put off by their charges and limitations.

After speaking to a Payplan adviser, she signed up for a free debt management plan and now feels enormously relieved.

‘We have agreed a budget and I just make one payment to Payplan, who distribute the money amongst the creditors. The whole family is committed to the budget and we are pulling together’

To support Karen’s extraordinary fundraising work and to find out the up and coming result of her nomination for ‘Croydon’s Charity Champion 2007′ visit Karen’s Charity Fundraising website. You can read all about Karen’s latest fundraising activities and how she is personally dealing with the symptoms of MS.

If you would like to contact an experienced money adviser at Payplan then call them free on 0800 280 2816 or use their debt assessment to submit your details online.

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Homeowners prepare for rising living costs

Homeowners with mortgages appear to be tightening their belts and are preparing to meet the cost of higher interest rates, mortgage repayments and household utility bills.

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This is in contrast to people who rent their homes and have continued to borrow at a steady rate and consequently are more worried about their debts than those with mortgages.

Sean Murphy from Alliance & Leicester said that “Even though average interest rates on unsecured borrowings have actually fallen over the last 12 months, that has not been enough to tempt mortgage borrowers to take on more unsecured debt.”�

The amount of spare money available to UK families has fallen and less people are planning to buy their first home, release equity for home improvements or make investments in new properties.

Debt consolidation options reduced

Whilst it is good news that homeowners appear to be prioritising their mortgage payments, for some, obtaining further credit to consolidate existing debts is still seen as an attractive debt management solution.

However, the recent ‘credit crunch’ means that conventional options of debt relief such as debt consolidation or equity release are narrowing as banks begin to restrict and slow down lending.

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With UK debt at a record £1300 billion, an increase of £115 billion in the last year alone, and the average household debt standing at just under £9000, many people are now struggling to prioritise their monthly costs such as their mortgage or rent repayments with fewer options left within the credit market to help them.

If this is affecting you, then you can get free, non-judgmental debt advice from an organisation like Payplan.

Contact an experienced money adviser at Payplan free on 0800 280 2816 or use their debt assessment to submit your details online.