Christmas spending 'should be prepared now'

National Australia Bank (NAB) is set to remove charges for those people who go overdrawn on their bank accounts, it has been revealed.Moves by the financial services provider will see overdrawn account fees for all its personal transaction and saving acco

It may still be months away but consumers are being advised to consider how they will fund Christmas.

Writing for Lifehacker, Jason Fitzpatrick points that although it is just under five months away by taking the time to plan their festive finances consumers can spare themselves from "the sticker shock of Christmas spending".

Indeed, doing so can see people avoid having to run up large credit card bills to meet last-minute expenses.

Consequently, he points to guidance from LaToya Irby of About.com that a budget should be set out early and money should be taken from paychecks into a special saving account to fund the purchasing of gifts and other festive expenses.

"It's much easier to set realistic spending limits for Christmas when you're half a year away from them than during the usually stressful weeks leading up to them," he claims.

Meanwhile, financial counsellor Sandra Bourke recently claimed that although credit cards can be a useful way to supplement spending, consistently relying on them could prove to be the beginning of major financial difficulties.

Written by Kate Guthrie