Start financial detox early

Posted 2007-12-3

High interest rates, rising prices and slowing wage growth will make this January’s debt hangover particularly difficult.
January is the most common time for Citizens Advice to receive enquiries for loan arrears, debt arrears, credit card bills and overdrafts.  Citizens Advice is now recommending Britons to plan their spending as it prepares for a surge in post-Christmas debt enquires. With Barclaycard, Citizens Advice has set out a guide to avoid debt problems in the New Year.
Teresa Perchard, Director of Policy at Citizens Advice said:
“With a little forward planning, Christmas panic buying can be avoided.  We hope these top tips will help people take control of their money as Christmas approaches so they do not start the New Year with a debt hangover.”
Below are the top tips outlined by Citizens Advice and Barclaycard to avoid a post- Christmas debt hangover:
•    Plan early for Christmas. Be realistic and budget.
•    Do not forget everyday bills.  Remember rent, mortgage and utility bills. The consequence of missing these bills can be severe.
•    Do not bank on an overdraft. Talk to your bank first, unauthorised overdrafts are expensive.
•    Avoid shop credit offers. Stay away from buy now; pay later unless it really does work out cheaper.  Interest free credit sounds attractive, but can be hard to budget for and expensive if you miss a payment.
•    Shop around.  Find the best deal. Price comparison websites make it easy.

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