Credit Unions Share Money-Saving Tips for Christmas

Friday 20 December 2024

Credit unions across Great Britain have shared their top tips to help members save money during the festive period.

The credit unions have advised people to plan ahead, use cash instead of cards, talk to friends and family about spending limits, consolidate existing debt, and save throughout the year.

Matt Bland, CEO of Co-op Credit Union, emphasised the importance of planning ahead and looking out for bargains. He said: “As we approach the festive season, it’s important to celebrate responsibly and keep our finances in check. Setting a realistic budget and sticking to it can make a significant difference.

“Plan your expenses, look for deals, and consider gift exchanges like Secret Santa to manage costs. If you need to use credit, consider options with lower interest rates.”

Matt also pointed out that credit unions ‘often offer lower-interest loan options’ and financial advice. He encouraged people struggling financially to reach out to their local credit union for guidance and assistance.

Sheenah Young, CEO of South Manchester Credit Union, urged people to use cash instead of cards to help keep budgets under control. She said: “One effective way to manage your finances during the festive season is to use cash instead of cards. At the beginning of each week, decide how much you can afford to spend on Christmas-related expenses.

“Take out the budgeted amount in cash and commit to using only that cash for your purchases.

Using cash can make it easier to see how much you’re spending and helps you distinguish between necessary and luxury purchases.”

Sheenagh advised saving any leftover money for the next week or putting it towards other savings goals or paying down debt.

June Campbell, Chair of the Board of directors at Just Credit Union, highlighted the pressure to please loved ones and give children the perfect Christmas as ‘top reasons’ for overspending during the festive season.

She advised people to talk to their friends and family about how much they can afford to spend on presents. June said: “This might feel like a difficult conversation, but it helps to remember that other people will be struggling this Christmas.

“If you’re spending too much on presents for loved ones, they might feel the pressure to spend the same amount on you, even if they can’t afford to.”

Paul Norgrove, CEO of Serve and Protect Credit Union, urged people to consolidate debt they already have and save little and often throughout the year.

He said: “A simple way to avoid the annual financial fallout from Christmas is to save throughout the year.By spreading the cost over 12 months, our members retain their financial resilience throughout winter, safeguarding them from financial shocks.”

He also pointed out that many people turn to credit to fund Christmas spending or to recover their finances in the new year.