Tackling the pressures of Christmas spending
In January and February, many of the conversations we have with customers are either about debt that’s built up before and during the Christmas period. Along with the extra spending during this period we’re likely to have increased fuel bills as the cold weather and longer nights set in. Those early weeks of the new year are when first payments might be due, or the credit card bill is larger than usual. So, let’s look at the situation now, rather than later.
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Don’t let debt snowball
I know there’s a lot of pressure to spend at this time of year. Costs are still high but we feel there are expectations about food, drink, gifts and going out. It’s worth setting an overall budget and keeping track so you stay in control and don’t land yourself with a large amount of debt to pay back. If you’re worried about this, Money Helper has some useful advice, including how to have difficult conversations with family and friends about spending less at this time of year.
I appreciate that it’s now December and you may have already spent ‘too much’ or agreed to borrow money to cover costs. If that’s the case, the first thing I want to say is – don’t panic. Check now how much you owe and when you need to make repayments, so you can be ready. You can contact my team and we can look at your options together.
It’s really important that you don’t ignore anyone you owe money to. Communication is vital and the best way to get back on track. In my experience, companies don’t react well to being ignored, so as scary as it may seem, having the conversation is much better than doing nothing – and actually avoids some of the stress that can build up through worry. Again, we can help you with these conversations.
The Money Advice team offer free, confidential advice to any bpha customer looking to improve their financial situation. You can get in touch here.
Amanda Ryan, bpha’s Money Advice Manager