Martin Lewis: A year of being debt-free is far more important than a Christmas splurge

The clip above has been taken from The Martin Lewis Money Show Christmas Special, airing on Thursday 25 November, with permission from ITV Studios. All rights reserved. You can turn on subtitles by selecting the closed captions icon at the bottom right of the video. You can also watch the full episode on the ITV Hub.

Martin: Accept that you may not be able to afford that 'lust list' and be honest with those around you

In response to an audience member, who asked Martin if it's wise to spend above their means through credit cards and buy-now pay-later products this winter, Martin said: "The mistake many people make on limited budgets about Christmas is they have a lust list - but accept you can't meet this list."

Martin also hammered home the importance of being honest and open about your finances with your friends, family and children - especially if they're of the age when they'll understand your financial circumstances. He said: "Be honest to your children about money and cut your cloth accordingly."

Budget accordingly - and don't forget Martin's 'Money Mantras'

The best way to understand if you can afford something this Christmas is to plan your budget, said Martin. He said: "The right way to do this is to do a budget and work out how much money you have and then ask what is the best possible Christmas I can have on that amount of money?" 

And don't forget Martin's Money Mantras before spending: 

Remember, Christmas is just one day

Martin also reiterated that staying out of debt is far more worthwhile than splurging and getting back into debt this Christmas.

Martin said: "If you can't have a wonderful Christmas - remember it's only one day - the whole year of being debt-free is far more important."

If you're struggling with your finances, see our Debt Problems guide for what to do and where to get help. Our Debt-Free Wannabe Forum board also offers mutual support and help for those on their journey to becoming debt-free.