The Minister for Social and Family Affairs has called on families to be prudent with their spending approaching Christmas and to avoid running into debt or visiting money lenders to cover their seasonal costs.
Mary Hanafin said people have a chance now to prepare for Christmas, get good advice about spending and ensure they have a good festive season without running into debt that could cripple them for years.
"We all know that it is very easy to get swept along with all the hype and fuss which the festive season brings. Taking simple steps and following practical advice from now on will help ensure that you do not get into debt which can seem like a black hole," she said.
She warned against an over-dependence on Christmas bonuses or overtime that may come as the holiday approaches and cautioned against putting off the payment of regular household bills until after the holidays.
"Every year we see the massive demands for Exceptional Needs Payments to cover heating and electricity bills which consumers are unable to pay. Between December 2007 and April 2008 over 5,700 payments were made to individuals amounting to nearly ¤1.5 million for the period around Christmas," she said.
Ms Hanafin was speaking as the Money Advice and Budgeting Service (Mabs) unveiled an appeal to consumers to avoid letting the "ghost of Christmas haunt them in the New Year".
Mabs said it has seen a large increase in the number of people seeking help over the past 12 months, with 12,500 visiting its 52 branches across the State and 10,000 individuals contacting its confidential phone line.
In an attempt to help households in the run-up to Christmas, Mabs has published 12 practical budgeting tips, which the Minister believes can offer a smart financial start to 2009.
"Putting in the effort this side of Christmas will definitely add up in the New Year," Annmarie O'Connor of Mabs said.
MABS tips for a more affordable Christmas:
- Make out a budget of your household income and outgoings to see how much you can afford to spend this Christmas.
- Decide in advance exactly what you want to buy and more importantly the amount you can afford to spend.
- Shop early and give yourself time to shop around for the best bargains.
- Pay cash if you can. Leave your credit card at home.
- When buying food and drink be realistic. Shops will open again in a day or two after Christmas.
- Encourage your children to choose early what they want from Santa Claus — before the advertisers decide for them.
- Children don't need new clothes for Christmas – if you must buy something make sure they can wear it after Christmas too.
