Dealing with your post-Christmas debt

Over the Christmas period, one and a half million people took out fast cash loans to cover the costs of the annual festive celebration. The expectation to buy everyone, even relatives you hardly see, a Christmas gift is excessive and overblown, but it remains a presumption that everyone continues to abide by. Friends often advise you to “just buy them a gift card” as an easy solution, but these still cost money, and for many people, it’s money they can’t afford to spend.

The sharp rise in the number of people applying for a payday loan shows how high the cost of living in the UK currently is. Unfortunately, it shows no signs of relinquishing. Housing, especially, is an area where a lot of people struggle to cope. Property in the most desirable suburbs of London is priced at more than £1,000 per square foot. Can you afford that?


Covering the basic costs of living – rent, food, transport and bills – is hard enough, and budgeting for Christmas presents can be a challenge for even the most financially-savvy individual.

Now Christmas is over, the debts and credit card bills start appearing on your doorstep and the reality of how much the festive season actually cost you becomes clear. Due to this, January can be a very depressing time, but don’t let your debt get the better of you. If you take control of your finances now you can begin clearing away your financial problems.

And by following a few simple steps, you can begin to rid yourself of your Christmas-induced debt.

Don’t ignore the problem

Your debts won’t just fade away if you ignore them. It sounds simple, but a lot of people seem to believe (or want to believe) the opposite. If you’re struggling to deal with your debt, the first thing you should do is write down everything you owe. This way you can see everything clearly and start to come up with a plan. Your debts which accumulate the highest interest rate should be a priority and paid off first. A much larger debt, although it seems more important to pay off, can wait if it has a lower interest rate.

Make the minimum repayments

If you have numerous credit cards or debts to pay, find out what the minimum repayment for each is. At this point, only aim to pay off what you need to. Any extra you can contribute is a bonus. The most important thing is to not default on a repayment. While it may not feel like you’re making a dent in your debt by doing this, your credit rating and lending options in the future will reap the rewards.

Stop using the credit card

Spending more is only going to increase your debt and make it a much harder and longer process to get on top of. If you make a vow to avoid using your credit card for a month or more, your debt will begin to shrink. A lot of people get into the habit of using their credit card when they don’t really need to. Once you break this habit you’ll notice you have much less of a financial burden to deal with.

Take a short term loan

If you really are financially stuck, then consider taking a short term loan to tide you over until you get paid. There’s no denying that payday loans have a bad reputation. Rogue traders who use immoral business practices have caused people to assume all lenders are the same. But don’t let one bad story turn you off the idea. The government’s coming crackdown on immoral lending means that payday loans are going to become much safer and secure options. So, as long as you do your research, choose a reliable company and only borrow what you really need, then a payday loan can be a much-needed help.