A Bradford-based charity which helps people in debt is offering tips to help people enjoy Christmas and keep a handle on their finances.

Christians Against Poverty (CAP) says its 1,500 clients will be able to use their savings to help fund Christmas this year and prepare for 2009.

The advice comes as Bradford-based financial services provider Provident Financial announced a rise in returning customers following the introduction of banks’ tightened lending criteria.

CAP’s UK chief executive, Matt Barlow, said: “It is no surprise, given the recent economic crisis, that people are worried about the cost of Christmas.

“We recommend that people think hard when spending money on Christmas, and not use credit without first considering how it will then be paid off in the new year.

“Our 1,500 clients who are now able to use their savings to help fund Christmas this year will testify how it is possible to budget well and also enjoy the festive season.

“Our top ten budgeting tips can help people to enjoy Christmas whilst still keeping a handle on their finances “Our advice is simple to follow and easy to put into practice.”

Dave Scott, market financial advisor for Skipton Financial Services, has also urged people not to bury their head in the sand at this time of year.

He said: “The best bit of advice we would give people is to do a simple budget plan of what you have going in each month and, more importantly, what your monthly outgoings are.

“It’s much quicker and easier to reduce what’s going out than to increase what’s coming in and you might be surprised how easy you can cut costs, like cancelling that gym membership you never use.

“Now is not the time to be an ostrich and put your head in the sand.

“Now is the time to adopt a battle-like mentality and do everything you can to protect yourself for anything the coming months might throw at you.”

Meanwhile, Provident Financial has announced it saw a rise in customers it serves in its home credit business by seven per cent between July 2007 and July 2008 – contributing to a rise of 6.8 per cent in profit.

The group said much of this growth is down to the effectiveness of its marketing. But it says some of it will also be due to the tightening of lending criteria, and in many cases the withdrawal from the non-standard market, by mainstream and near-prime credit providers.

Chief executive Peter Crook said: “We have maintained a cautious outlook on the UK economy for well over a year and have actively managed credit quality.

“Our conservative approach to lending, combined with the group’s strong balance sheet and funding profile, means that the group is well placed to continue high-quality customers and profits growth.”

The group said the current economic climate has put pressure on customers’ disposable incomes, which remains the most important influence on lending decisions, and since 2006 it has attracted back some of the customers lost to competing forms of credit over the last few years.

For more information on Christians Against Poverty, go to capuk.org.

TOP TEN TIPS

1 - Budget: Decide on a realistic and sustainable budget and stick to it – it can be so easy to overspend on loved ones, but avoid the temptation.

2 - Save: Save up for Christmas and then you won’t have to fund festivities on top of your usual outgoings. If you’ve no savings this Christmas, start saving in January for next Christmas.

3 - Use Cash: Wherever possible, use cash and avoid paying for presents on credit cards. You might get a nasty shock in the new year when the bills come through.

4 - Make Presents: Try to make presents as opposed to buying them. For example, home-made biscuits, chocolate and fudge make a lovely gift and show you’ve spent some time and care.

5 - Love: Remember – you can’t buy love. Don’t feel guilty if you can’t afford the latest present for your children. Your love and affection will last longer in the memory than any toy can.

6 - Reciprocal gifts: Don’t fall into the trap of reciprocal gift giving and buying from obligation.

7 - Be honest: If you have children and they’re old enough to understand, be honest about your finances and talk to your family about your money situation.

8 - Plan ahead: Buy cards, crackers and wrapping paper in January in the sales for next year.

9 - Sales caution: Don’t overspend in the January sales, in spite of how good a bargain you might see. Make a budget and stick to it and, if possible, leave the credit cards at home.

10 - The real reason: Remember the real reason for Christmas. It’s not about presents, it’s about Jesus.