Yes I know…now we’re in December, the festive season is upon us, ’tis the season to be jolly, and all that sort of stuff. The season of goodwill to all men and a time of giving…ah yes, that’s where the problems tend to start!

It seems that most of us in the UK tend to go a bit silly when it comes to spending money on our loved ones at Christmas time. Don’t get me wrong and start calling me Ebenezer Scrooge; I enjoy Christmas as much as the next man, but it’s worth making a small note of caution to those individuals who are about to hit the high street.

Many people simply spend money which they haven’t got, just so that they can buy presents for their family and friends, which end up being pushed into the back corner of some cupboard and forgotten about (the presents that it, not the friends!).

This spending without thought about the consequences can cause extreme problems for people who put the cost of Christmas on a credit card, or in some cases take out a personal loan to cover the additional expense, particularly in January when the credit card statement lands on the door mat, or the personal loan repayments start going out of the bank.

With the current economic slow down, things appear to be slightly more sensible this year, with high street stores reporting low sales figures and more people shopping on line for their presents, thereby saving themselves money, but despite this, it is likely that many of us will overspend just for the sake of a couple of days, which kind of misses the point of Christmas.

Think carefully about what you are spending and keep a record of the amount spent, remembering that it all has to be repaid in January. If you do take out a personal loan to cover the cost, only take a term of one year maximum, because the likelihood is that you will need another loan to pay for next Christmas and so the problem is exacerbated.

Have a good Christmas by all means, but I think a little bit of the Scrooge attitude won’t go amiss, particularly in the current economic climate.