Accessing affordable credit this Christmas

Christmas can often be a tough time financially, with unexpected costs often making you feel more stressed

According to the Bank of England, the average UK household spends over £800 more in December.  In 2019, stated that us Brits spend an average of £450 on credit cards to cover the cost of the festivities, with payday lenders targeting us with Christmas loans at eye-watering interest rates of up to 1,333 per cent!

For those of us that don’t have enough in savings to cover the costs we have provided some useful tips to help you stay within budget, but also the importance of avoiding payday loans and high interest credit, so you can have a Christmas you can enjoy.

Spend less on Christmas

It might seem like an obvious solution, but for some, it’s not as simple. However, if you plan your spending, and not leave it until last minute, you’ll find plenty of ways to cut back, cut out, or use alternatives which will save you money.

Spend less in other ways

If you know you won’t be able to cut back on Christmas expenses, then think about cutting back on other things in the build up to the festive season. There isn’t much time left to save huge amounts, but little things like cutting out your weekly takeaways, or daily coffee shop trips will soon add up, and give you that bit extra during the festivities.

Avoid payday lenders and high interest credit cards

If you do need to borrow, be sure to avoid payday lenders or high interest credit cards – these can have a negative impact on your credit profile and affect your future borrowing.

Credit Unions can provide an ethical alternative if you do need to access affordable credit. There is also the option of making repayments straight from pay, which just makes it that little bit easier to manage your repayments. They also have the added benefit of no early repayment penalties, which helps you save money on interest when paying your loan off early.

Here to help you save, there if you need to borrow.

Serve and Protect Credit Union is a free employee benefit available to the Police, Prison, Military, Fire and Health Services. With over 37,000 members we are here to help you save and there if you need to borrow throughout your career and beyond.

To learn more about how Serve and Protect Credit Union can improve your financial resilience visit

  • The information provided in this article is for guidance and educational purposes only. Police Credit Union Ltd. does not offer regulated financial advice. Please seek independent financial advice.

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