The chief executive of the Irish League of Credit Unions has warned about allowing Christmas spending to get out of control. "The pressure and temptation to spend beyond what we can really afford is exceptional at this time of the year.
"The result can turn a happy Christmas into a New Year nightmare," Mr Liam O'Dwyer said.He offered five tips to ensure spending is kept under control:
Be prudent - think about what you really, really need.
Plan to spend - decide in advance how to spend what you can afford.
Use cash - that way you'll know how much you're really spending.
Borrow up-front - if you must borrow, do it now from your local credit union for best repayment terms.
Clear your credit card - the moment your January bill arrives, borrow from your credit union and pay off your credit card completely.
He added that there were already signs of financial problems for many people, especially those on low incomes or social welfare."We're seeing, for example, people fearful of being hit by the recent 16 social welfare cuts announced by Government in the recent Book of Estimates, particularly in relation to the cuts announced in rent allowance."
"People who have to live on very tight budgets and are already borrowing from credit unions to make ends meet, could now have further problems in making their credit union repayments,"he said.