Christmas may be months away, but when it comes to financial planning, the festive season comes around all too soon.

Britain’s recovery from the so-called double dip recession is slow and, according to figures from the Office for National Statistics, unemployment in the region increased by 23,000 in the three months leading to July.

For those who are struggling financially, time is of the essence to start saving to fund Christmas. If preparations aren’t put in place, many families could be starting 2013 in debt.

The 100-day countdown to Christmas begins on Sunday, prompting Bradford-based debt counselling charity Christians Against Poverty (CAP) to encourage people to plan ahead.

The charity says too many people who fear financing Christmas aren’t properly prepared and end up resorting to using credit cards.

Matt Barlow, chief executive of CAP, says: “It is easy to put Christmas to the back of your mind when it feels like we’re barely finished with summer, but we want people to use this 100-day marker to have a reality check.

“Christmas will come, and people need to have a plan because we all know it’s easy to get carried away nearer the time. No-one wants to start the New Year up to their eyes in debt and stress and a bit of preparation now will help to avoid that.”

CAP has compiled five top tips to help people prepare for Christmas. It suggests saving something from each wage packet between now and Christmas, budgeting for presents, food and going out, and making a few purchases each month to spread the cost.

The charity also suggests teaming up with family members to buy a child something special, and managing the expectations of children.

CAP will be running free money workshops throughout October to help people learn how to take control of their finances.

Adds Mr Barlow: “You may never have planned ahead before, but it really takes the pressure off, leaving you relaxed to really enjoy what matters. In the current economic climate, we can’t afford to be unwise about our finances.”

Alex Bohdanowicz, specialist services manager for Bradford and Airedale Citizens Advice Bureau, says the organisation is currently seeing an ‘explosion’ in the different types of debt it is dealing with, including pay-day loans.

“It is a very difficult time, particularly for people with children,” she says.

She advises people to start saving early, even if they start saving £5 a week from now until the festivities. “It will make a significant difference,” says Alex.

Expectation can often lead people to spend more than they can afford. Alex advises people to manage their festive spending.“Try to take a different approach to Christmas and recognise it is about spending time with your families, with your friends.”

“Pool resources and try not to see it as an event which really needs to be expensive with presents and things. Make sure that before you look at Christmas you remember your everyday bills because they will still be there in January once the Christmas tree has been taken down.”

She says those who may have to borrow should only seek affordable credit. “One of the things people do is run up an unauthorised overdraft and pay-day loans, but again you can be paying thousands of per cent APR. Try and plan, shop around and budget from now, but remember it is one event in the year and people have to try and manage the rest of the year,” she says.

Paul Kadzionis, assistant manager of the Bradford and District Credit Union, says they are currently seeing an increase in small loan activity in the run-up to the festive season.

The Union currently has 3,700 members. According to Paul, 40 people are receiving loans monthly. He says more are applying for loans but they have to start saving for three months before they can apply.

“We tend to see this trend before Christmas. There is an increase in the number of loans. I think the message is getting across to people they need to budget, but times are very hard,” he says.

According to the Consumer Credit Counselling Service, the average unsecured personal debt of Bradford clients is £14,524.

They suggest reducing the financial costs of Christmas by making a list of expenses within a budget, avoiding impulse buys, searching for cheaper goods on the internet, while considering that postage could make it more expensive. The advice is to buy early in the sales and avoid purchasing on plastic.

For details about CAP or for more about next month’s workshops, visit capdebthelp.org. For more about Bradford and District Credit Union, visit bdcu.co.uk or e-mail credit.union@bdcu.co.uk. Bradford and Airedale Citizens Advice Bureau’s debt advice line is (01274) 758047.