Member Article

Beware Christmas debts, says expert

A local debt advice firm is warning those who have overspent this Christmas to be cautious if they turn to companies offering debt management schemes or payday loans for help.

Over the next 6 months, DAWN Advice estimates that 3.5 million Britons will turn to Payday loans for financial help, but a large proportion will see their money problems spiral further out of control if they fall into the cycle of short term borrowing.

Liz Chadwick from DAWN Advice is now calling on those who are considering using this type of finance to think seriously about the problems they could face if they sign up for these high interest loans.

She commented: “January is always a difficult month for people as the true cost of Christmas really starts to hit home.

“Credit and store card bills will begin to arrive and reminders for any payments which
may have been forgotten in December will quickly flood in.

“People can also be struck by previous Christmas purchases, which they had long since put to back of their minds, if they’d taken out finance contracts such as ’pay nothing for 12 months.”

Liz also urged people who have received their wages early this month to exercise restraint, or risk going short in January.

She added: “With all these financial pressures hanging over people’s heads as they start the New Year turning to a payday loan or commercial debt management firm may seem like
the most appealing solution.

“However, I would urge anyone considering this to stop and really think about what they may be getting into and to seek independent and impartial advice before signing on the dotted line to ensure that they have found the right debt solution to suit their situation.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .