Don’t get snowed under with Christmas debts

Nov 25 2009 by Wendy Scott, Airdrie & Coatbridge Advertiser

COATBRIDGE and Airdrie Citizens Advice Bureau are launching their Christmas Money campaign with a call for local people to avoid a debt hangover in the New Year.

At the two bureaux in the past six months staff have dealt with 463 new clients with 2978 issues and over £4.5 million of debt.

The average debt per client is now in the region of a whopping £15,000. Norma Macdonald, manager of Coatbridge CAB, said: “ We normally see an increase in the numbers of people coming for debt advice in January after the festivities are over.

“This year we want to make sure we get the message out to as many people as possible; Don't overspend in the run-up to Xmas and don't forget that the everyday bills still need to be paid.

“At the bureaux we are here to help and want everyone to enjoy themselves without falling into difficulties in the New Year.”

Top money tips from the experts are:

Plan early for Christmas - be realistic and budget accordingly. Work out how much you are going to spend on each person and stick to it.

Don't forget the everyday bills - remember that rent, the mortgage, utility bills, food bills and other existing debts still have to be paid and there’s serious consequences if they are not.

Don't bank on an overdraft - if you need more money, don't just run up an overdraft - speak to your bank first.

Keep things simple - if you can afford to pay for your goods outright by cash, cheque or debit card, don't be persuaded to take out extended credit agreements unless they really do work out cheaper.

Shop around - try as many different places as possible to find the best price. Buy what you want and not what other people say you need.

Be wary of extended warranties; the cost of a repair could be less than the cost of the warranty.

Buy safe to be safe - whatever the deal, don't buy from unauthorised traders and never borrow from unauthorised lenders. The initial savings and convenience may prove to be a false economy.

Read the small print - check for hidden extras in any credit agreement. Work out the total amount payable and ensure that you can easily meet the repayments.

Interest-free deals can be attractive but if you don't pay on time or miss a payment you could end up having to pay a lot more.

Credit cards - if you are going to use a credit card, shop around for the best deals and compare rates. Some cards charge high interest rates but provide interest-free periods or discounts. Budget for all these costs and always make sure you remember payment dates.

Be organised - there's always a lot to do at Christmas, but if you've borrowed money don't forget that it won't be long before you have to make a payment. Make sure you pay on time, even if it is only the minimum or you will be faced with additional charges.

l For free, independent, confidential and impartial advice contact your local Citizens Advice Bureau. Coatbridge on 01236 421447 or Airdrie on 01236 754109.