They say that Christmas is the season when you buy this year’s gifts with next year’s money, and given the latest headlines, this may ring true for a lot of people.
No doubt the news that the Governor of the Bank of England, Mark Carney, has ruled out an interest rate rise for now will be of great relief for those managing repayment of their debts. The ever increasing level of unsecured debt per household is still a worrying statistic, which has no doubt been compounded by our Christmas extravagances. So how best should you deal with your post-Christmas debt burden?
British households currently have record levels of unsecured borrowing. Levels have increased by approximately £600 to reach pre-crisis levels of £11,800 per household (per TUC analysis). This suggests that people are still borrowing to make ends meet and do not appear too deterred from the seasonal ‘big spend’.
The Bank of England revealed that household borrowing surged in the run up to Christmas. The monthly cash rise in consumer credit for November 2015 was the highest since February 2008.
Despite this, consumers have not heeded advice and have increased their borrowing, not only to meet day-to-day essentials but to spread the Christmas cheer. With headlines continuing to present a dreary financial picture, I suspect some of that Christmas excess was in an effort to lift our spirits. But to what detriment?
The first few months of the year are usually the time when overspending catches up with people. R3, the Association of Business Recovery Professionals offer action plans to help people recognise and address their money issues and it is important not to stick your head in the sand.
Here are some pointers to ensure that you seek help when you require it:
Here is a link to R3’s published guidance concerning your options.
At Bailey Ahmad Business Recovery we are well versed in assisting individuals and business through times of financial hardship. Importantly you should:
If this blog has struck a chord with you, do not feel isolated. Pick up the phone for impartial honest advice.