With the financial fallout of Christmas 2023 still impacting households across the region – and beyond – we’re taking a look at what advice and support is available to anyone who’s fallen into debt over the festive period.
According to pre-December 25th figures from debt charity StepChange, around four million Brits were expected to turn to credit to help them cover the cost of last Christmas, leading to warnings that around 20% of those borrowers would still be making repayments more than a year later.
With the average spend on Xmas per person estimated to have been approximately £1,811.70 and the total unsecured debt per UK adult in October 2023 already standing at £4,125, it’s clear to see that many people are currently struggling with debt.
So if you’re one of them, what can you do about it?
Read on to find out…
Acknowledge the problem.
Anyone can be affected by debt, which can creep up suddenly and turn a manageable financial situation into an out of control problem that can result in sleepless nights and feelings of embarrassment.
Luckily, it is possible to spot the signs of impending financial difficulties and stop them before they become a serious issue. Read the following statements and see if any apply to you. If they do, this may be an indication that you have debt issues and should actively seek help and advice to help you manage them.
Access debt advice and support.
If you think you would benefit from help and advice, there are several organisations that can help.
Citizens Advice has lots of information on its website, with advice on everything from dealing with urgent debts and/or arrears to reducing your outgoings. Click here to find out more.
MoneySavingExpert also has a wealth of information re debt problems and the help that is available on its website at https://www.moneysavingexpert.com/loans/debt-help-plan/
Closer to home, our Money and Budgeting Service (MABS) works in partnership with Housing Leeds to help tenants who are struggling to budget their money and pay their bills. We can help you arrange affordable payment plans to cover your arrears and look at switching providers if cheaper alternatives are available. To get in touch, click here.
Apply for a debt consolidation loan.
In the majority of cases, financial help from reputable lenders is available to those who need it.
Debt consolidation loans are loans that an individual takes out to pay off their existing debts. The individual uses the money from the debt consolidation loan to pay off the people or companies to whom they are in debt, then repays the loan in monthly instalments.
Debt consolidation loans can be used to pay off different types of debt, such as credit cards, overdrafts, store cards or personal loans.
Taking out a debt consolidation loan is an effective way of taking back control of your finances as it allows you to immediately pay off all your debts and leaves you responsible for just one repayment each month.
When you have several lenders to repay each month, it can be easy to forget to make a payment, especially if the repayments are for different amounts and due on different dates. Needless to say, this makes budgeting and general money management much more difficult.
Because bigger loans often come with lower interest rates, debt consolidation loans can also lower your monthly repayment amount, reducing your outgoings. The repayments can also be spread over a period of time that is more suitable for you, which could potentially lower your monthly repayments too.
How Leeds Credit Union can help.
At LCU, we offer affordable debt consolidation loans to our members. For more information or to apply for one, click here.