Money saving tips

• Avoid a financial hangover this Christmas
• Scams you should avoid
• Slash your petrol costs
• Sort your finances
• Top ways to save £20 and even more

Avoid a financial hangover this Christmas

If you are keen to avoid a financial hangover the Citizens Advice Bureau issues top tips to keep your spending under control.

1. Set a budget
   Plan your spending according to your budget. Prepare a budget and set a limited amount for each individual on your Christmas list and stick to it. Be realistic of what you can afford to give - don't go overboard.

2. Don't forget the everyday bills
   Although Christmas comes only once a year, the regular bills are around all-year-round, like your rent, mortgage, utility bills, food and other expenses. These expenses have to be paid on time unless you want them to pile up. Set your priorities right even through Christmas time.

3. Don't bank on an overdraft
   If you are low on budget and need extra cash, avoid running up an overdraft without consulting your bank. This can be more costly in the long-run.

4. Simplify things
   More often than not it's cheaper to buy with cash, cheque or debit card instead of using your credit cards where you have to pay interest. Although you get more consumer protection should something go wrong, use your credit cards only on discounted items wherever possible.

5. Shop around
   It always pays to check as many price comparison websites as possible to find the best special offers. Buy only things you want and not what people say you should have. It is not always wise to bank on items with long warranties, most of the times, the cost of repair is less than the cost of the warranty.

6. Be safe, buy safe
   As a rule never buy counterfeit goods or goods from unauthorised dealers - and never borrow from unauthorised lenders like loan sharks.

7. Read the small print
   If you need to resort to credit, always read the small print of any credit agreement. Compute the total amount to be paid and ensure you can afford the monthly instalments. Although some credit cards offer interest-free purchases, missing one payment can cost you a lot more.

8. Manage your own credit balance
   If you are looking for a credit card, go for the one with the lowest interest rate. But you have to be smart - some cards may charge high interest rates, but they also provide interest free periods or discounts. Be sure to pencil in your diary or calendar the dates for payments of any purchases made on credit cards and stick to them.

9. Organise yourself
   Christmas should always be full of happy memories, and this includes remembering paying for the money you borrowed. Keep in mind that paying on time means less interest and missing on payment translates to additional charges.

10. Plan and save for next Christmas
    Learn from your mistakes and how to better plan the next Christmas and start saving early.