Watchdog urges shoppers to be savvy with spending this Christmas

Consumers can avoid the Christmas blues and fear of being in the seasonal red, financially speaking, by simple budget planning, according to the National Consumer Agency.

The watchdog has appealed to consumers to avoid overspending on credit cards in the bustling pre-Christmas shopping period.

It also encourages consumers to stay on top of their finances by using its specially developed Christmas planner.

This allows people to plan the cost of gifts and cards, food and drink, decorations and entertaining, and other Christmas expenses.

NCA spokeswoman Karen O’Leary said the Christmas budget planner had proven an extremely useful tool for consumers in past years by allowing consumers to set a budget and listing all the costs associated with the festive season.

There were almost 6,000 visits to the NCA planner in the last quarter of 2011.

The agency also issued a number of money-saving tips to help consumers manage their spending, including avoiding last-minute shopping and being realistic with food shopping.

It says it is easy to get caught up in the excitement of the season and for people to blow their budget.

“Dedicate some time to think about what you can afford to spend before you go shopping. A good way to keep on top of how much you are spending is to pay with cash or your debit card,” said Ms O’Leary. “You will be less likely to overspend than if you use a credit card.”

A recent NCA credit card survey showed that standard interest rates can vary from 13.6% to 22.7% while special introductory rates can range from 0% for six months to 3.9% for 12.