What you can do if you have a debt hangover
*PLEASE BE AWARE THIS IS AN OLDER POST AND THERE MAY BE A MORE UP TO DATE POST, OR UPDATED INFORMATION AVAILABLE ON https://www.citizensadvice.org.uk/ *
Christmas can be an expensive time for many and once the festivities are over and January hits, you may start to worry about your financial situation. We know the start of the year can be a great time to address any financial issues you may be having and get a fresh start, so we’re here to give you advice on how you can do this.
Get advice and support early on
Asking for help and making a plan early on can make a huge difference to the amount of money you need to pay back as the earlier you deal with it, the less interest you will have to pay overall.
Our specialist debt advisers are here to help no matter how much you owe and we can offer confidential, independent and judgement-free advice if you’re struggling. You may also want to speak to your creditors to arrange repayment plans and it’s best to do this as early as you can to avoid serious action being taken.
Start budgeting
Looking at budgeting is a great way to take control of your finances in January and understand where your money is going and where you can possibly cut costs.
If you’re not sure where to start, you can use our free budgeting tool.
Don’t forget about non-consumer debt
Credit cards and loans aren’t the only types of debt you could be thinking about in January. If you are in arrears for things like council tax, rent or energy bills, you should work on dealing with these debts first as they are priority debts and have the more severe consequences.
You can find a full list of priority and non-priority debts here.
Maximise your income
Looking for ways to maximise your income can really benefit your finances, and there are multiple ways you can try and do this. You may be entitled to claim specific benefits or grants and you can use a benefits calculator to find out what you could get. Make sure you have handy information about your savings, income, pension, childcare payments and any benefits you or your partner get.
It is also worth double checking you’re paying the right amount of tax, such as income tax and council tax. You can check you're paying the correct amount of income tax online here, and you can check your council tax band on the government website.
Be wary of borrowing money
If you’re looking to work on paying off debts, be careful with borrowing money. It isn’t the simple fix it may appear to be in the short-term, and you should only borrow money you know you’ll be able to pay back. You should also make sure you’re aware of any serious long-term problems it may cause.
If you need specialist debt advice, get in touch with us today - call us free on 0808 2787 801. If you’re an organisation who is interested in becoming a Refernet partner, find out more here.
