Thursday, 4 December 2008


However far you've got with your Christmas shopping, don't be tempted to overspend. Whatever the government says - we, as individuals, cannot spend our way out of recession and if you're anything like me, 2.50% off VAT will not do much to encourage you to buy something you can't afford anyway! Make sure that, whatever the new year has to bring, you do not have a staggering credit card bill to deal with. These are uncertain times and the three Rs (recession, redundancy, repossession) are already being banded about on TV, in the papers and on the radio. We will hear soon whether we are officially in recession - of course we already know the answer to that! But make sure, whatever you do, that you have as little ongoing debt as possible. Dropping interest rates will mean that any savings we have in banks and building societies will earn very little, so decide how much of your "nest egg" you can afford to use (keeping some rainy day money aside if you can!) to beat down your debts - then do it. Buy only what you need, save up for it - an old-fashioned idea, but, nevertheless, a good one and use credit only in an extreme emergency. Spending other people's money always costs us dearly.

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