January Financial Crunch Approaches

January 9th 2013

Every January there is a surge in demand for the services provided by debt advisers and protected trust deed providers. This is probably no surprise as many people defer making major financial decisions until after Christmas and New Year. For example, the same uptake in demand also applies to house purchases. Mortgage brokers and estate agents also often get much busier around this time. 

This year looks as though it may be especially busy for those working in debt advice. A survey by consumer organisation Which? has confirmed that more than 1.5million people around the UK used short-term credit to manage the costs of Christmas last month. Short-term credit encompasses generally expensive credit such as payday loans (which are typically used as a last resort).

22% of the respondents to the Which? survey also said that they were only able to manage the costs of Christmas by using their bank overdraft, credit card or a bank loan. 46% of respondents said that they did in fact use these types of credit to cover their expenses over the festive period. It’s clear that when these bills start having to be paid this month many people are going to face a severe financial dilemma.

During a period when incomes are restricted and costs have increased significantly it’s not surprising that so many people are struggling to manage the excess costs of the Christmas and New Year period. It is however vital that people that have built up further debts this winter take a long and very rational look at their finances. What should you do if it’s apparent that you are struggling to pay back your debts?

If you simply cannot make your household budget add up the first thing to do is to make a personal pledge to yourself that you will not try to borrow your way out of the mess. Unless you can switch all of your credit affordably to lower-cost sources of credit you will only be making things much worse in the future. Speaking to a debt adviser should be your first step to getting back in control.

Where can you find quality advice on debt and debt solutions such as protected trust deeds or debt arrangement schemes in Scotland? There are highly professional money advisers working for CABs and local authorities throughout Scotland. There are also many well-trained staff working within licenced firms of insolvency practitioners. Other debt advice providers, including the advice team working here at Trust-Deed.co.uk, have completed professional qualifications on debt advice delivery.

With so many sources of quality advice available there really is no reason to delay seeking advice if you’re struggling financially in the aftermath of Christmas. Making that first phone call for help can be a very difficult step to take but it is likely also to be one that you’ll never regret taking.

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