Avoiding debt problems this Christmas | Chiltern Debt Management

With Christmas approaching faster than a speeding train, almost five million people are still trying to get out of debts that they ran up last year.

More worrying is the news that around three quarters of Brits are short of money to pay for this year’s festivities, so could be walking into a further £8billion hangover.

The survey by Money.co.uk also shows that a third of us are worried about the overdrafts and credit card debts that this Christmas will bring, and only 15% of those questioned had made an effort to save up for the season’s spending.

As a result, 85% of people could end up developing serious debt problems if they overstretch themselves on their store cards and other credit streams.

Chris Morling from Money.co.uk said: “You have to worry about the effect all this last-minute spending will have in January.

“Many people are likely to be very short of cash going into the New Year – not a great start.”

Ivan Cooper, Chairman at debt management experts Chiltern, said: “In the current climate, taking on any more credit than you can realistically afford is a dangerous game.

“Yes, it’s nice to give presents and be part of the festivities, but more important is ensuring that once the dust has settled you can still afford to live happily.”

The best way to avoid debt problems around christmas is to take a serious look at your current debt management and see if you are spending more than you have coming in.

For people who are struggling with their debt management problems, a professional solution may help relieve debt stress immediately.

Reputable debt help companies, like The Debt People, Hamilton Locke and Chiltern, offer a number of professional debt solutions.

These include Debt Management Plans (DMPs), Individual Voluntary Arrangements (IVAs), Trust Deeds amongst others. Debt Management Plans, IVAs and Trust Deeds enable repayments towards multiple unsecured balances to be gathered into one manageable payment.

For immediate debt advice, or to learn more about debt management solutions, please call the number at the top of this page.

Fees & Information

We cannot guarantee a reduction in interest or charges. If an IVA is not maintained it could lead to bankruptcy. Whilst initial debt advice is free, fees will be charged if a solution is taken out.

Fees related to Debt Management Plans are in two parts;

"Initial Fee" means your first two "Monthly Payments", which is paid by You to "Us". This represents our fee for establishing your arrangement, and therefore is not distributed to your creditors, and can be paid in two separate instalments. Retention of this fee will put you into further arrears.

"Monthly Fee" means the Fee payable for our Services each month. This is an amount equal to 17.5% of your "Monthly Payment" (apart from your first two "Monthly Payments" which is the "Initial Fee"), subject to a minimum payment of £30 for disposable incomes of 0 - £100, and £35 for disposable incomes of £100.01 - £200.

Fees incurred for Individual Voluntary Arrangements are variable dependent upon the monthly contribution to the arrangement and the agreement that is reached with your creditors. Fees are made up of Nominees fees relating to assistance given to prepare your proposal and Supervisor fees which relate to the ongoing monitoring of your IVA. Fees are already included as part of your monthly contribution. The level of fees and the method of payment are both agreed by your creditors at the outset of the arrangement.

A record of your agreement with us will be held on your credit file for up to six years, and your ability to obtain credit in future may be affected.

You are provided a cooling off period of fourteen days from the date the agreement was deemed to commence, during which you may cancel our agreement. Should you give notice to us that you would like a refund of a payment, or payments, (being other than the initial fee) then where no distributions have, at that time, been made by us, or are in the process or course of being made by us, in respect of that payment or payments this will be made in full (i.e. without deduction of our fee of 17.5%).