How To Manage The Cost Of Christmas With Financing Options

With Christmas only 2 months away, many are starting to get their plans in place. Whether it’s the purchasing of Christmas decorations or presents for family and friends, Christmas is one of the most expensive times of the year. It’s a multi-million-dollar industry for retail business while other business owners experience a Christmas downturn. The cost of Christmas leaves many wondering how they’re going to pay for it whether it’s through loans with a guarantor or out of their own pocket, Christmas can be more distressing, when you’re wondering about spending, than it is enjoyable. Christmas is generally considered one of the most expensive times of the year. See how it all adds up and what you can do to fund it, right here.

In this post we’re going to look at the cost of Christmas. Breaking down what we actually spend our money on over the Christmas period. We’ll also inform you of some alternate financing methods that can help make your Christmas a little less worrying from a financial point of view. Find out all about the cost of Christmas in the post!

What We Spend Money On

In this section, we’re going to break down the national averages of what households spend, including what the costs of each part actually are.

First, we look into the cost of food and drink over the festive period. It’s estimated that the average household will spend around $225 on food and drink for Christmas day alone. This excludes any festive parties, boxing day and even New Year’s Eve. This includes everything to do with Christmas dinner. The turkey, the sprouts, the spuds, the veg, the mince pies, the Christmas pudding – it all isn’t cheap. Then, we add on the drinks. Whether it’s soft drinks for the kids or something stronger for the adults, it all adds up. Alcohol is not cheap, when you consider wine, beer, spirits, the sparkling stuff – pushing up the cost of Christmas mores.

Next, we have parties and transport. Now, if you’re attending a festive party, of course, you’ll need an outfit for it. It’s estimated the average cost for a Christmas party outfit will be around £66, with more and more costs adding up when you consider getting home. Taxis aren’t cheap at the best of times, and in the freezing cold of December, walking it isn’t really an option. Whether it’s international or within the country, the costs of petrol, flights and more all add up over the festive period.

Finally, there’s presents. Presents are by far what the most amount of money is spent on. Different surveys suggest that the cost of presents ranges anywhere from $500 – $1,000! It’s alarming when you consider how many people you may actually have to buy for. Friends, family, corporate gifts and sometimes more! The cost of presents takes a real toll on wallets and purses in the festive season.

How To Finance The Festivities

So, you’ve seen how much Christmas could cost you. And now, you may be wondering how you’re going to fund it. Well, there’s many different ways to fund your Christmas should you choose to use them.


Many find themselves taking out loans over the festive period, to finance their Christmas. Whether you find a personal loan from a bank or a loan with a guarantor (if your credit is bad), it’s an easy way to secure the cash up front to fund the festive period. Most loans will have interest rates attached to them, meaning you’ll pay back more than you borrowed. Those with bad credit will find that their interest rates are higher than the average, due to their lower credit score.

Credit Card

If you have a credit card with a good limit and a low interest APR, this could be a good option. As long as you don’t overspend and manage your repayments carefully, you could budget your Christmas on your credit card and pay it back over the following year. Credit cards tend to have a lower interest rate than most loans, so using them wisely can save you money. However, there may still be interest rates attached so you’ll be paying back a little more than what you originally borrowed.


Whilst it may be too late for this one, using savings to fund Christmas spending is probably one of the smartest options. There’s no interest to pay, and it can be a great way of budgeting your Christmas over the year. Looking at your savings you’ll see what you can afford to spend and can either go without extra financing or put a little bit on a credit card or take out a smaller loan. This requires preparation, so try and save up a little over the year for next year.

How To Save Money

Whilst it’s always advised that you seek independent financial advice before taking out a loan, you should never overspend and leave yourself in unmanageable debt. The key with saving money at Christmas is budgeting. Look at what you can and can’t afford to spend and make necessary cut backs. Whether it’s asking one of your Christmas day guests to bring some food or the drinks or if it’s cutting some of your friends’ present budgets down, working out what you can afford is always the ideal way. Because, Christmas should be about family time. Whilst all the extras are nice, landing yourself in debt because of the festive season isn’t a necessity. Be smart with your spending and ensure that you’re not putting yourself in a difficult financial position for the year ahead.

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