A debt-free Jubilee?

The long weekend of the Jubilee is behind us (2^nd-5^thJune), but has it left you in debt? When you have a larger family, entertaining everyone can be expensive – and a surprising number of people expected to go into debt this Jubilee.

What was the real cost of the Jubilee?

Research from the budgeting account provider www.thinkmoney.co.uk indicated that around half (47%) of people who weren’t working over the Bank Holiday didn’t plan to spend any more than usual.   On the other hand, 24% of them, which is equivalent to around 11 million people, expected that they would end up spending more money than usual. 3% expected to spend £100 more over the Bank Holiday, while another 3% expected to spend £150+ more than usual.   However, only around a third (36%) said they could afford to spend this extra money without worrying, whereas a savvy 2 million people (19%) budgeted or saved up for the long weekend.   Most of the other respondents didn’t know where they would find the extra money and 14% said they’d put any extra on their credit card.

How to avoid debt next Bank Holiday

Surveys like this are interesting because they give us an insight into how people relate to money. Most people didn’t see any reason to spend more money than usual over the Bank Holiday weekend, despite the Diamond Jubilee. In fact, most people said they were going to stay at home (52%).   But there were still a significant number of people who were planning to spend more and perhaps go into debt to do so.   So, here are a few suggestions that could help you to avoid debt next Bank Holiday.

• Use savings wherever possible for events like these.
• Budget in advance for time off work or big celebrations. Plan for events like these a least a few months in advance and set aside part of your income each month so that you can spend ‘guilt-free’ on the day.
• Think of what you can do with the kids for free or cheaply while still entertaining them. A picnic in the park or a trip to a museum or gallery doesn’t have to break the bank.
• Try to avoid placing non-essential purchases on credit cards, as this can work out very expensive if you don’t repay the balance straight away. The longer you leave repaying the balance, the more the interest grows.
• If you’d like to save money for a future event but you haven’t got much spare cash, look at your budget again and see whether you could ‘cut back’ on anything that’s not essential to free up money in your budget.

Taking steps like these before the next Bank Holiday (which is due in August) could help you and your family stay out of unnecessary debt.

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