Households urged to start saving for next Christmas now to avoid getting into debt
7.9million Brits are expecting to fall behind on their finances in January after the festive splurge
HARD-UP Brits are being urged to start saving now for next Christmas to avoid falling into debt.
Some 7.9MILLION Brits are expecting to fall behind on their bills this month after the expensive festive period.
And now debt charity, the Money Advice Trust (MAT), is calling on households to start planning for next Christmas already to avoid falling into a debt spiral.
It found that half of Brits (55 per cent) hadn't bothered to save any money at all before December to pay for Christmas, with 37 per cent putting all their presents on credit cards.
Just 14 per cent said they had started saving before last summer.
To help, MAT is urging people to make new year's resolutions to get their finances in shape for 2018.
By budgeting for the year ahead, households can get on top on top of their finances and work out how much they can save each month.
It says a good idea to help save throughout the year is to join a Credit Union - many of which offer Christmas savings accounts that can only have money withdrawn from later in the year.
And if you're struggling with debts, then don't bury your head in the sand and seek help from a charity like the National Debtline, which is run by MAT, straight away.
Joanna Elson OBE, chief executive of MAT, said: “After the celebrations of the Christmas period, January is a challenging time for many households with the impact of festive spending taking its toll on household budgets.
"With millions expecting to fall behind with their finances in January, we want people to be financially prepared for the year ahead.
"At the start of this new year, when resolutions are being made, I would encourage everyone to look at their personal finances and make a plan if they can for 2018.
"Set a household budget, look at joining a credit union in preparation for next Christmas and seek free advice at if you are struggling to cope.
CHRISTMAS HANGOVER How to get out of debt before January 31 in eight simple steps
"Taking these first steps to make a plan for your finances can make a huge difference for the rest of 2018."
Money experts are becoming increasingly concerned about the levels of debts Brits are carrying.
Regulator the Financial Conduct Authority (FCA) warned that five million consumers are struggling to repay their credit cards bills.
Those in "persistent debt" could have charges reduced or wiped completely under new rules, which could come into force as early as next year.
More on money
Mark Lyonette, chief executive of the Association of British Credit Unions, added: "Credit unions across the country help their members to save towards the costs of Christmas with dedicated Christmas savings accounts which lock funds away and make them available as the festivities approach.
"Even if you’re not in a position to start saving straight away, credit union borrowers are encouraged to save a small amount while they repay their loans – called Save as you Borrow.
"So if this year’s celebrations have left you with a financial hangover join your local credit union and make sure 2019 starts off on a better financial footing."
How to cut the cost of your debt
Being in large amounts of debts can be really worrying. Here are some tips from Citizens Advice on how you can take action.
Check your bank balance on a regular basis - knowing your spending patterns is the first step to managing your money
Work out your budget - by writing down your income and taking away your essential bills such as food and transport.
If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum - If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner - If you have more than one credit card and can’t pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts - If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them.
Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don't pay.
Get advice - If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further.
Groups like Citizens Advice and Money Advice Trust can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516