Is Christmas is the best time to deal with debt?

Nobody wants to be reminded of debt issues at this festive time of year – but as millions hit the shops and ‘max out’ credit cards, perhaps it’s wise to reflect on our finances as the year draws to a close.

Leading financial solutions provider Think Money offers some tips on how to have a cut-price Christmas in a recent press release – but stresses that budgeting may not be enough for some debt problems.

• One idea is re-using Christmas decorations, instead of throwing them all away. Once the tree comes down, it can be tempting to throw the tinsel and baubles away – especially if they were only cheap – but storing them safely in a loft or cupboard could keep them in pristine condition for next year. 
• Another idea for cash-strapped friends and families is a ‘Secret Santa’ – in which each person buys one other person a mystery gift. That way, everyone gets a present, but nobody should spend any more than they can afford.
• Or how about spreading the cost of food and drink across the family? If you’re hosting, it’s not too much to ask aunts, uncles, cousins and grandparents to bring along a bottle or an item of food. 

There’s debt consolidation information on the Think Money website plus details of all the other solutions available but Think Money recommend that you speak to one of their experts before deciding on the route to take.

As the world counts down to 2012 and your finances look in worse shape than this time last year, take heart from the fact that you are not alone: A recent study by insolvency experts R3 showed that a third of British adults believed their financial situation was set to worsen over the next six months.

So, if you’re struggling now, maybe it’s wise to get help dealing with the future.