Christmas can be an expensive time for many, and often that can cause financial problems to spill over into the New Year. However, it’s never too late to start taking charge of your finances and be in control. We’ve put together some tips for tackling debt and avoiding a January debt hangover.

Seek advice and support early

It’s never too late to start addressing your debts, and the sooner you reach out for advice and support, the better. We understand that money can be a difficult topic to talk about, and that’s why our specialist debt advisers offer confidential, free, and non-judgemental advice to help you take back control of your finances.

You should speak to your creditors as soon as you can as it is easier to agree to repayment plans with early action. You can also  ask someone to speak to your creditor on your behalf.

Prioritise the right debts

When it comes to debt issues, it isn’t all about credit cards, loans, and hire purchases. Whilst consumer debt remains an issue for many, it’s important to be aware of non-consumer debts.

These are debts such as rent arrears, council tax, energy debts, and any other regular household expenses. If you have any of these debts, it’s important to deal with them first because they can have the most severe consequences. If you have more than one priority debt, speak to one of our advisers to figure out what to deal with first and how. 

Once you’ve dealt with priority debts, you can address your non-priority debts. These are ‘non-priority’ as the consequences are less severe. 

You can find a full list of priority and non-priority debts here. You can also find information on how to ask your creditors to stop chasing you while you deal with your priority debts.

Maximise your income

Maximising your income can be a great way of addressing financial challenges. 

You may be entitled to benefits and grants that you didn’t know you were. Use a benefits calculator to see what you could get. Make sure you have information about savings, income, and any other benefits you or your partner get, to hand.

You can also check that you’re being paid the correct amount. Use this minimum wage calculator, where you can also check if your employer owes you any money.

Finally, you can check you’re paying the right amount of tax, such as income tax or council tax. You can check whether you’re paying the right amount of income tax here, and you can check your council tax band on the government website, 

If you need specialist debt advice, get in touch with us today - call us free on 0808 278 7800, or visit our ‘Get Advice’ page for more ways you can access advice.