Experts offer tips to avoid post-Xmas debt problems
Published On 3 December 2007
Consumers can avoid getting into debt and possibly needing tools like IVAs over the Christmas period by carefully planning their spending, an industry expert has said.Citizens Advice has reported that it generally experiences a surge in debt enquires directly after the holiday period. It added that last year, a large number of people struggled with arrears on loans and hire purchase and credit card borrowing in particular.
It added that more people contacted the organisation needing advice about bankruptcy and IVAs.
However, the group said that consumers can avoid the post-Christmas financial hangover by planning their spending early and keeping things as simple as possible.
What's more, Citizens Advice said that it was vital the people did not forget to pay things like mortgage, utility bills and outstanding borrowing during the festive weeks.
Finally, the organisation revealed that it was important not to rely on an overdraft to finance Christmas gifts.
"It is very easy to get carried away at Christmas and spend on the spur of the moment, especially if people leave it until the last minute," explained Teresa Perchard, director of policy at the charity.
"But every year, we see a huge increase in debt problems immediately afterwards. With a little forward planning, Christmas panic buying can be avoided."
A recent report suggested that rising mortgage repayments were forcing people to reduce how much they plan to spend over the holiday.
