For many of us, the post-festive period means only one thing - having to face the consequences of our spending, but there are pain-free ways of paying off our debts, as Shoptalk discovers.
AND now the money hangover starts. Already the bills are starting to plop down on the mat - credit cards, store cards and mail order. Not to mention the letter about the overdraft, the tax demand, tuition fees and all the usual household bills, including, of course, the electricity for all those pretty twinkling lights that blazed with such happy abandon just a few weeks ago.
But if you are starting the New Year deep in debt, you're not alone. And you can get out of it. But you have to leap into action immediately. Debt costs money. You have to pay interest which means it's a monster that keeps growing. The less you do about it, the bigger it gets. So doing nothing is not an option.
Here are some simple suggestions on how to cope:
1. Don't panic.
2. Don't ignore it, however tempting. Open those envelopes and face up to it.
3. Stop spending. Obvious isn't it? But it's amazing the number of people who buy something to cheer themselves up. Don't. In fact, try not to spend anything at all. Pretend there's a war on, pretend you're snowed in, pretend the shops have got the plague, pretend the world has ended, but as much as you can, for as long as you can, make do with what you've got.
4. Make a list of what you owe where, so you know just how deep the mess is. Then see exactly how much you have coming in and work out how much you can pay off how quickly. This might also make you realise how much you've been spending on takeaways or shop-bought sandwiches. Make your own at home instead.
5. Prioritise debts. Keep a roof over your head first by paying the rent/mortgage, then start on the debts that charge the most interest - probably store cards and credit cards.
6. Credit cards can help you out of debt if you change to one offering nought per cent interest. There are plenty to choose from - offers are swooping through the door as fast as the bills - so there's really no excuse for paying interest. But DON'T use your new credit card to go shopping. You're not buying anything, remember?
7. If you're overdrawn, make sure you have an authorised overdraft from the bank, otherwise they'll keep hammering you with high charges as well as interest.
8. If you're in serious bother, talk to people. Most companies would rather a debt was paid off slowly but regularly than not at all. You might be surprised.
9. Have a general spring clean of your finances (see panel).
10. Think twice, and twice again, about taking out another loan to clear all your debts. Very occasionally a consolidation loan can tidy up your problems. However, it is also another way of making your debt last l-o-n-g-e-r.
11. Get help. There are plenty of advice services who have seen it all before and know the best ways to help you. Try:
* Citizens' Advice Bureaux - free, impartial debt and money advice. Find them in the phone book or at www.citizensadvice.org.uk
* National Debtline, a free telephone-based advice service on 0808 808 4000 or at www.nationaldebtline.co.uk
* Consumer Credit Counselling Service, a charity funded by the financial services industry. Tel: 0800 138 1111 or www.cccs.co.uk.
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