Tis the season to be frugal

It's not easy saying no at Christmas, whether it be resisting the temptation of another mince pie and glass of mulled wine or reigning in the spending.
The festive period is, after all, a time when we feel we should treat ourselves and others at the end of another year and, thanks to the country's advertising industry's best efforts, we have no shortage of options on which to splash the cash.

This year, however, it may well be different and, indeed, for many of us, it should be as simple economics mean that festive frugality could make the difference between a happy new year and a worrisome 2008.

Over the past few months, it has become only too apparent that, as a nation, we are not in a great state of economic health.

Following the troubles originating in the US, lenders have cut back on the amount of money they are willing to give us all.

According to the financial advice website moneyexpert.com, around 1.9 million Britons had their applications for personal loans rejected over the six months to the end of September this year in comparison to the 1.39 million of the previous six-month period.

Worryingly, many people could be tempted to take such a rejection from a major high street lender as the spur to turn to a higher rate deal simply so they can have a luxury Christmas.

However, it's simply not worth it, as experts have been quick to point out.

James Ketchell, a spokesman for the Consumer Credit Counselling Service (CCCS), has explained that, for those already in money trouble, Christmas could prove to be "the tipping point which pushes people over the edge".

"People will have to be a lot more careful in their spending than they have been in the past perhaps, and really look at the cost of all the expenses at Christmas," he said.

"They will have to live within their means."

For those that have to tighten their belts this Christmas, experts advise that they start preparing for next year's celebrations once the tinsel comes down in January to avoid having to live like Scrooge for two years in a row.

After all, while most of the things we blow our money on are certainly very nice, most of them we can live without, for one year at least and, given that financial circumstances can often change overnight, next year, the celebrations could more than make up for a bit of penny-pinching in 2007.