Avoid ‘DEBTcember’ in 2025
We know as well as you do that the cost of living has been going up and up… Whether it’s food, fuel, power or pet insurance, it seems that everything we need to survive is costing a lot more than it did 12 months ago, and more than 12 months before then.
Yeah thanks for stating the obvious Dan and Dave (we hear you think to yourself). We get it, but we need to hammer home some boring prudent reminders…
This year, like prior years, is important to try and avoid becoming a victim of DEBTcember.
No one wants to be the one who spoils Christmas, so please don’t let this come across that way. All we want is for everyone to have one eye on 2026 and beyond as they make money and spending decisions this festive season. How much you spend in December will very likely have a big bearing on what your short-term financial future is going to look like. Let’s try keep the new year hangover to food and beverages only.
Black Friday sales are around the corner, and between now and Christmas the bombardment doesn’t ease up. This isn’t about not spending, it’s about not overspending.
So, here are a few simple strategies to help navigate your way through the Christmas frenzy…
- Know how much you have to spend
This is the most important piece to get right! All the marketing is trying to lure you towards impulse buying, which is why knowing your limit will keep you in check.
Keep a record of what you are buying along the way so that you know how much you have left to spend. Also try and make sure that what you purchase is essential and not just another want.
- Think beyond Christmas
The temptations will come to spend more and more as Christmas approaches and to make extra last-minute purchases. To help stick to your budget, remind yourself of what you want to achieve in 2026 and beyond. A budget blowout at Christmas can set things back a long way… for example, spending an extra couple of thousand dollars at Christmas that you didn’t really intend to, could be the difference between being able to comfortably afford a holiday in 2026 vs having to possibly miss out. Or what if interest rates on your mortgage don’t budge… then what?
Everything in moderation!
- Try to avoid credit
Again, we don’t want to sound like Grinch when it comes to Christmas… BUT, even though there may be a need to put a few things on the credit card, wherever possible, try and avoid it. And if you do have to put things on credit, first map out a plan to take money from each upcoming pay to get it paid off ASAP and avoid too long a debt hangover in 2026.
And if you need a reminder of just how dangerous your credit card can be, check out the interest rate payable after your interest-free period expires (ouch!).
Hopefully, the above just gives you a bit of a reminder of what is upon us all, and a framework to keep your spending in check. Everyone’s situation is different, so we all have to make the decisions that are right for our own situation. But as we approach the expensive end of 2025, let’s try and avoid undoing all the hard work we’ve done throughout the year, while at the same time ending the year in style.
Perhaps you can even use the cost of living pressures to have a joke and a laugh with friends and family who feel your pain – finally, something that costs you nothing!
Cheers,
Dan and Dave
