Every year many of us have every intention of saving money to pay for Christmas gifts so that we don’t have to use credit cards, take out loans, or rely on overdrafts to make our purchases for the festive season. However, for one reason or another we end up failing miserably to save the money that we need, and before we know it we have run up a huge bill on our credit card or taken out a loan that we cannot afford, leaving us paying off the debt for the rest of the year.

One of the reasons many of us end up in this situation is because we do not prepare ourselves for the festive season even though we know that it is going to end up costing us lots of money. There are a number of ways in which you can eliminate the problem of Christmas suddenly coming around and finding that you cannot afford gifts without getting into huge amounts of debt.

One way in which you can do this is simply by being sensible with your finances for the rest of the year. You know that Christmas is going to be coming around at the end of the year, so look at your budget and see how much you can afford to put side in a separate account each month towards the cost of the coming Christmas. If you start in January and put aside just £50 a month you will have £600 by December, which will pay a very good portion if not all of your Christmas present bill.

You can also look at the various Christmas clubs that are around, into which you can pay money each month, and when Christmas comes around you can choose from a wide range of gifts and vouchers to give as gifts. Again, this can take the hassle out of worrying about where the money is going to come from for Christmas presents when the festive season comes around.

Another way in which you can save money on the cost of Christmas is to buy your presents in January ready for the coming December. After Christmas the cost of some fabulous gifts sets and ideal presents is slashed by 50 percent or even 75 percent, which means that you can buy all your gifts for the following year for a fraction of the retail price, and you can be prepared and paid up for Christmas well in advance.