Credit Crunch

Christmas & The Credit Crunch Crisis

This Christmas, UK shoppers are expected to spend around £31 billion on the festive season’s traditional trappings – including gifts and groceries – and more than £7 billion of that total will be on credit. However, what happens in January when we have to start paying it all back?

With the current crisis now formally being called a recession, many of us are going to burn our credit bridges this December by spending on credit cards when we know we’re going to struggle to pay it back.

So what can we do about it?

The single most important thing to do is to make a budget for Christmas based on what you can realistically afford, and then tailor what you buy to meet that budget. Remember that ultimately, Christmas is one day, two at most then it’s back to life as normal but back to it with sometimes huge debts that you have little hope of repaying.

Is it really worth ruining your credit record to buy a turkey big enough to feed an army? Is it worth spending £20 on a jumper for someone who will most likely never wear it?

There’s a great deal of pressure on us all to ‘provide’ at Christmas and make a huge deal of it, but we need to readjust our thinking on it. It is only one day, but it’s one day that could leave you in desperate straits for the other 364.

If you’re struggling to cope financially, now or after Christmas, here are a few organizations who can help and who provide free advice:www.cccs.co.uk

Consumer Credit Counselling Service CCCS
Helplines open 8am-8pm, Monday to Friday on 0800 1381111
Online counselling is available 24 hours

National Debtline
The helpline that provides free confidential and independent advice on how to deal with debt problems.
Tel: 0808 8084000
www.nationaldebtline.co.uk

Citizens Advice Bureau
Citizens Advice Bureaux provide free, confidential and independent advice.
www.citizensadvice.org.uk