Reducing the Christmas Damage

In the previous post I was very Bah! Humbug! about Christmas spending.  But if history has taught us anything it’s that prohibition doesn’t work so I’m going to focus on harm minimization now.  So how do you minimise the damage that may get done this Christmas.

• Do not take a cash advance from your credit card- cash advances start accruing interest from the moment you withdraw the cash.  If you going to use the credit card better to spend direct from the plastic that way you’ll have a month interest free at least
• If you’re having difficulty paying a bill DO NOT stick your head in the sand- call the creditors and be straight up with them. “I’m sorry (insert electricity provider) I can not afford to pay the full amount this month, can I pay $x”.  You will be amazed at how negotiable they are.
• Remember your holiday pay has to last for the whole holiday, it isn’t a cash bonus!
• Beware of “interest free for X number of months” deals if you don’t pay them off before the end of the interest free period some of the contracts will have interest back dating from the begining of the interest free period.  Worryingly the minimum payment isn’t always enough to repay the debt in the interest free period.
• If you’re self employed/casual/sub contractor and your workplace shuts down for Christmas money might be tight in the giving season.  If you’ve got a hard time making ends meet your creditors are obliged to offer you Hardship Provisions.  Your banks might be able to give you a couple of months off from payments.