Need to know
The Citizens Advice group has great advice for anyone who may have overspent during the festive season
How to get your finances back on track if you spent too much at Christmas
This Citizens Advice article provides practical guidance for individuals struggling with financial strain following the holiday season. It emphasises the importance of early intervention, budgeting, and debt management to regain control. By offering structured steps and professional resources, the guide aims to reduce the stress associated with post-Christmas financial recovery.
- The first step toward recovery is creating a comprehensive budget that clearly lists all monthly income alongside essential and non-essential expenditures. This allows individuals to identify exactly where their money is going and pinpoint areas where spending can be immediately reduced.
- It is crucial to prioritize “priority debts” such as rent, mortgage, council tax, and energy bills over non-priority debts like credit cards. Failure to pay these essential costs can lead to more severe consequences, including eviction, bailiff action, or the disconnection of vital services.
- Individuals are encouraged to contact their creditors as soon as they realize they may struggle to make a scheduled payment. Many companies are willing to set up affordable repayment plans or offer temporary breathing space if they are informed of the situation early.
- The guide highlights the “Breathing Space” scheme, which provides a legal protection period of up to 60 days from creditor action. This government-backed initiative pauses interest and enforcement, giving people the necessary time to seek professional debt advice and find a solution.
- Maximizing income is another key strategy, which involves checking eligibility for unclaimed benefits or searching for cheaper utility and insurance providers. Small changes, such as switching to a lower-cost supermarket or canceling unused subscriptions, can significantly improve a household’s weekly cash flow.
- Seeking free, confidential advice from organizations like Citizens Advice can provide a personalized roadmap for those feeling overwhelmed by their financial situation. Professional advisors can help negotiate with lenders and ensure that individuals are accessing every form of financial support available to them.
Read more here.
