Consumers told to seek debt management advice

Consumers are told to seek debt management advice, particularly in managing their overdrafts after weeks of spending binge during the festive season, to survive January until the next pay day.

Moneynet.co.uk said consumers must quickly contact their banks or building societies and arrange an authorised overdraft to give them some financial breathing space at least until when finances are not so tight.

Andrew Hagger of Moneynet.co.uk said struggling consumers who do not have an agreed overdraft could see a bonanza of charges this January, especially if they slipped into unauthorised overdraft.

Hagger said, “With Christmas well and truly behind us, the cold reality of a depleted bank balance will make for bleak reading for some people who may struggle to avoid exceeding their limit before January pay day finally arrives.”

It is understood that a number of people received their salaries early over Christmas. But most of these salaries have already been spent during the Holidays and it could be a real struggle for people to last the extra weeks leading to the next pay day. The situation is even harder for people who overspent in December or got carried away in the New Year sales, he said.

Hagger explained that the cost of an authorised overdraft is a mere fraction of the cost of unauthorised borrowing, and a arranging a temporary increase for a couple of months whilst you get your finances back on track could save you from some crippling bank charges which could turn a minor problem into something more serious.