12 tips to help you avoid Christmas debt

A charity in Hambleton has brought out a Christmas list of 12 tips to help people protect family finances during the festive season.

Citizens Advice Mid North Yorkshire has helped 1,390 people with debit problems in the past 12 months. The charity said 429 of those people needed advice between January and March, which is traditionally the busiest month.

At the Hambleton Office in Northallerton, advisers helped 500 people with debt problems, 103 of them falling in between January and March this year.

Now the festive season is in full swing, the charity has brought out a list of advice to help people manage household budgets.

The practical advice tips include early planning, steering clear of unauthorised overdrafts, and reading the small print when using credit.

Carol Shreeve, chief officer at Citizens Advice Mid North Yorkshire said: “People can feel an awful lot of pressure on their finances over Christmas. All too often, this gets carried into the new year where they have to play budget catch up.

“But there are some simple and practical steps people can take to guard against a festive debt hangover, including early planning.

“If people are really struggling financially they can speak to one of our advisers face to face, online, or over the phone.”

Citizens Advice Mid North Yorkshires 12 tips for Christmas:

• Plan early:Plan how much you are going to spend on each person and stick to it. Manage expectations about what you – or Santa – can give.

 

• Don’t forget everyday bills:It may be Christmas, but keep on top of priority bills, such as rent and council tax. The consequences for non-payment can be severe.

 

• Think twice about overdrafts:Don’t run up an overdraft without first chatting to your bank – or it could be costly.

 

• Keep it simple:Pay for your goods with cash or a debit card if you can. Don’t be persuaded to take out credit.

 

• Shop around:Look for the best price and buy only what you want, not what others say you need. Be wary of extended warranties – often the cost of repair is less.

 

• Avoid unauthorised lenders:Loan sharks may seem friendly at first but borrowing from them is never a good idea – even if you feel you have no other option.

 

• … and unauthorised traders:Whatever the deal, don’t buy from unauthorised traders – it may prove to be more expensive in the long run.

 

• Read the small print:Check credit agreements for hidden extras and work out the total amount to repay. Interest-free deals have a nasty sting if you miss a payment.

 

• Do your own credit checks: If you plan to use a credit card, shop around – some charge high interest, but may have lengthy interest-free periods.

 

• Be organised:If you’ve borrowed, repayment will be due before you know it. Make sure you make at least the minimum repayment or you’ll be hit with charges. Put payment dates in your diary or set up a direct debit.

 

• Start planning for next Christmas: It may sound crackers, but just after Christmas is the best time to learn what went well this year, what didn’t, and start saving.

 

• Get help if you’re worried: We can give you solid, free and impartial debt advice online, over the phone and face-to-face.

 

If you are having problems with debt and would like to speak to an adviser, call the Citizens Advice Hambleton office on 01609-776551  or visit; www.citizensadvice.org.uk/debt-and-money/