What a (debt) hangover

New Year brings debt misery for millions

Six million people fear that they will not have enough money to pay their Festive bills by the end of January according to statistics published by R3, the leading insolvency trade body. This means that 10% more people will be struggling this year than in 2010.

It’s all too easy to spend a bit too much over Christmas – we’ve all done it at some time or other. The problem is where that extra spending is the ‘straw that broke the camel’s back’ – the additional debt that proves to be the start of serious problems. Almost everyone has debt of some description, the key thing is to ensure that it is affordable and in line with income and expenditure. The wide availability of credit, from credit cards, loans, overdrafts, store cards, car finance and so on, means that it is all too easy to run up debts that simply aren’t affordable. And Christmas is a big temptation to get into debt, with unplanned spending and ill-placed but well-meaning over-indulgence in credit for presents and parties!

The increase in VAT and rises in living expenses such as food and fuel prices will add extra pressure to household budgets this year and many more people will find that they are getting behind with payments to banks, credit card companies and so on.

The good news is that there are many options for dealing with debt that has snowballed and become unmanageable. Taking advice as soon as possible will open up these options and allow youto make an informed decision. Ignoring the warning signs will only make the situation worse.

If you, or someone you know, is struggling to get by from month to month, call me on 01709 331300. We don’t charge for an initial consultation, where I can outline the all the options and recommend the best route – there’s no obligation and it’s completely confidential.