Debt worries after Christmas

Has Christmas left you with big money problems? Have you spent a more than you can afford? A survey from the Children’s Society found that 28% of families were expected to borrow money to get them through the festive period, with a large percentage of borrowers expected to come from London the North East of England and Wales. Research also found that over half of families that were already in debt planned to further their debt problems by borrowing more money over Christmas time.

It can be hard to wake up following the festive period with a larger debt looming over you than before the Christmas period. The thought of no money for the foreseeable future can be hard to take. It really is not a good way to start the New Year. There are many ways that you could have worsened your financial position with credit card limits extended, loans being taken out from the bank and high interest loans being taken out.

Following the busiest and most expensive time of the year, many people are left losing sleep over debts that have built up over the Christmas period. Compared to the previous year the amount of people seeking debt advice from National Debt Line has more than doubled.

A way to keep your debt as low as possible is to cut the cost of interest on any credit cards that you have. You can do a balance transfer where you get a new credit card and transfer the balance from existing cards at a lower or interest free rate. Currently you can get up to 41 months 0% interest free for around a 3% fee but if you can pay more quickly 25 month 0% for no fee. You need to make sure you’re making at least the minimum payment but don’t do anymore spending so this way your debt will be at the cheapest possible cost. Plan to clear the card before the 0% interest ends to avoid dearer charges.

For those who can’t make the minimum payments there is a different solution. There are 4 options, the first being free non-profit charity based debt counselling agencies, National Debt Line, Citizens Advice and Step Change. All these agencies advise on your debts and put your mind to ease about any outstanding debts you have.

Another option is an IVA which is an arrangement whereby an Insolvency Practitioner will negotiate with your creditors on your behalf to cut your monthly payments on unsecured debt such as personal loans, credit cards etc. to a more affordable level. An IVA seeks to protect a family home should this be owned by the debtor so there is reduced worry over the family home being repossessed.

If you are considering an IVA as a solution to your debt problems then please get in touch now by calling 0800 043 2424 or 0161 787 3400 or Contacting Us Here

You may also take a look at our Case Studies pages to see the type of situation some of our clients find themselves in. They may be very similar circumstances to your own. Also take a look at our Client Feedback page where will find some comments from our clients about the service received.

An IVA will generally stretch over a time period of 5 years and at this time any outstanding debt will be legally written off. An IVA will also take into account essentials such as, mort-gage or rent, food, household bills, allowances for motor expenses etc.