January can be a tough month on your finances. The festivities are over and the financial hangover is settling in. Budgets can be stretched as you are forced to face the bills for Christmas spending.
With an estimated 370,000 people expected to seek advice on money matters this January, it’s no surprise that millions of people rely on credit to fund their festive fun.
If this sounds a little like you, follow our top tips for dealing with the after effects of Christmas and get back in the black.
- Better your budgeting skills. Knowing exactly where all of your money is going is key to getting on top of your finances. Once you’ve figured out what your income and outgoings look like you can direct your money towards your debt. Remember to prioritise the debts that need paying off first.
- Tackle it with a transfer. If you are paying interest on a credit card debt, transfer the amount over to a 0% balance transfer credit card. With some, you can avoid hefty fees for up to 42 months and slash the size of your monthly repayments. Spend some time with our comparison tool and find one to suit you.
- Sell away! Make extra cash by selling any unwanted presents. If they are no use to you, they could definitely be of use to someone else. Try eBay and Preloved to offer up your items. You could always have a look around the house and find items you no longer need or use to sell. Everything from clothes to half-used perfumes can be sold.
- Start living within your means. Deter unnecessary expenses until your debt is dealt with. If you continue to spend, your debt will mount.
- Consider expert help. If your debt has spiralled out of control and you really have no idea where to start, seek professional advice. There are lots of free services that offer advice on how to deal with debt. Visit StepChange, Citizens Advice, or The National Debtline for help.
Last updated: Tuesday, 3 January 2017