Ten tips to avoid overspending this season

Enjoy this Christmas rather than get bogged down with financial worries. Intrum Justitia, Europe's leading provider of credit management services gives you advice on ways to manage your wallet.

Set a clear and realistic budget

This sounds simple, but there are many areas which can be missed off this list, from the new outfit for the Christmas party to extra presents for friends' children.

Make a list of presents to buy

And stick to it. Don't be tempted to buy lots of extra gifts just in case.

Agree present budgets with friends

If you are part of a large group of friends, why not suggest a secret Santa, where everyone pulls a name out of a hat and just buys for that one person. If you do this, and set a budget for £5, the costs drops dramatically, compared to buying a present for everyone.

Another suggestion would be to all pitch in for a Christmas meal and celebrate this as your presents to each other.

Start buying presents now

If you can buy a few presents now, the costs are spread across your monthly or weekly pay packets rather than having to put items on credit at the last minute. You'll be buying festive food and drink too, so add this to your current list.

Give presents that matter

One way to cut the cost of presents is to give home-made gifts. From chocolate truffles to cushions, a variety of items can be made at home for a fraction of the cost of buying a present.

Shop around

If you have time, look around for the best deal. There are so many offers on the Internet and in the supermarkets that can cut the costs of presents and food essentials dramatically.

Keep within budget

Take cash rather than a purse full of cards and your list of presents when you head out to the shops. That way, you can keep a full check on exactly how much you are spending.

Beware of new credit agreements

Promotional promises like: 'buy now', 'pay later' or '£20 off your first purchase' if you sign up to a new store card sound great, but they could lead to more debt.

Stop and think carefully before you sign up to the store card. Check what level of interest you will incur with a new card and plan your budget over the forthcoming months to ensure you can pay back the borrowing.

If you're unsure about a promotion, check out the Finance and Leasing Association's code of practice, which many store card providers have registered with and should adhere to.

Interest-free credit cards

If you do need to buy on credit, consider the interest-free credit cards. Many of these will allow you to pay off a debt or balance transfer at no interest over six months. This will make significant cost savings, compared to APRs of 15 or 20 per cent.

One tip, if you do sign up, is to make a note of the day the interest-free period expires, and keep sight of it - it is all too easy to slip into paying interest without realising it.

Too good to be true

If an offer seems too good to be true, then it probably is. Check the small print and ensure you understand all the details.