Avoid getting into debt this Christmas

South African households have high levels of debt, a thing that can be exacerbated during this time of spending.

If you are not in debt, well done and keep it up – don’t go making poor financial decisions now which you will have to keep paying next year.

Here are a few things to keep in mind:

1. When hosting a lunch or dinner, have each guest contribute a different dish.

2. Work out how much money you have to spend after budgeting for all the necessities – including those in January since another paycheck only comes late in that month.

3. Agree with family not to exchange gifts at all or fix a maximum amount that may be spent.

4. Do a gift exchange like a Secret Santa so that everyone has to buy only one gift.

5. Use the reward points on store cards and credit cards to obtain gift cards as presents to others.

6. Don’t leave gift shopping to the last minute: if you are in a hurry or panic you are likely to spend more than you would otherwise.

7. The golden rule is that if you can’t afford something, don’t buy it.