Debt advice could spike with Xmas bills

29/12/2009

Christmas bills that need to be paid in the early months of the New Year could lead more Britons to seek out debt advice.

That is according to the Homeowners Advice Centre, which explained that consumers "bury their head" in the sand in the run-up to the festive period.

This results in them spending freely and then having to deal with big bills in January and February, which may prompt them to turn to experts for debt solutions.

"As soon as the bills start to hit in January and February, that's when … inquiries have spiked, because people have over-extended themselves slightly," said Chris Jenkins, co-owner of the organisation.

He added: "If there are other variable problems like we have at the moment, such as unemployment and job uncertainty, then there might well be more enquiries in the new year with councils, which may push them further."

Last week, Sainsbury's Credit Cards suggested that a total of £1.37 billion would be spent over the festive period.

Kevin Still, director of EuroDebt, said: "Our advice is to seek professional debt help early before you start missing payments or juggling your credit commitments. Prioritising payments is a very important first step, especially to local authorities and utilities along with your mortgage or rent payments.

"Take the time to write down your monthly income & expenditure, allowing for annual costs that you may not be able to spread, like your car service or MOT. Many people start Debt Management Plans because they prefer a managed service and immediate access to face-to-face and telephone support."

Tags; Housing Debt and Bills,

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