Let's Talk Christmas

I KNOW.  OK, I know.  It's July.  The last thing you want is a chorus of Jingle Bells and to start thinking turkey and tinsel.  But don't hate me yet, bear with me. It'll be worth it in the end, I promise.  And in case you were wondering, I haven't been to any of those Christmas in July things that PR companies so kindly wave in front of your nose, in three days time, in central London, with no offers of travel costs, or even consideration for the fact that parents tend to have children.  And I'm not about to tell you what theme your Christmas table should have (Scandi-style is SO last year), or which toys your children will be clamouring for come December.  But it is worth starting to think.

Christmas seems to be getting increasingly competitive - who can give the biggest, best, shiniest, most expensive gifts.  And if that's what floats your boat, go to it, I guess.  But it takes planning, and that's why I'm writing this now.  It's no good having an entire room stuffed with colour co-ordinated presents if you're struggling to pay the electric bill.

The obvious way to prepare for Christmas is to start saving, as early and as much as possible.  But let's be honest.  That's not always possible, or easy for a lot of people, so here's some alternatives.

Savings clubs and hamper clubs - both national ones like Park, and local ones at the corner shop, allow you to save a little each week, without the temptation of having the cash at home or at the end of the debit card, so that come Christmas the presents and food are already paid for.  They have had some bad press, but that was an isolated incident, and as a rule your money is safe, and you can choose how to spend it - either on vouchers or on well priced items as the clubs are able to use their membership numbers to negotiate discounts from suppliers.

Taking on a part time job, or offering to do things like babysitting or ironing for cash to your friends and neighbours can bring in some additional cash - though please bear in mind that this could affect any benefit entitlements - and if you can put this money aside, there will be a nice little nest egg ready and waiting in December.

High street Hire Purchase companies and Coin-Op TV companies may seem affordable, with their low weekly payments and bright shiny adverts, but do you really want to be still paying for this year's Christmas presents in 3 years time?  That's the average length of their loans, so think about it very carefully.  And don't even get me started on payday lenders and doorstep lenders.  I've said before that they are toxic, and I'm fully in agreement with MP Stella Creasy that they are simply legal loan sharks.  So please, for me, steer clear.  If they look like your only option, seek advice first, there is always an alternative.  (I am not going to link to any of these companies. I have some rules around here)

Sometimes, with all the will in the world, credit IS the only solution.  I don't live in cloud cuckoo land (though I think it's not that far away)  Even then though, it takes planning.  Speak to your bank if you're likely to go overdrawn. It's much better to have an overdraft facility set up & not have to use it. An authorised overdraft will have much lower charges (if any), and won't damage your credit rating later on.  Credit Unions are another good way to access a relatively cheap loan, and they work in local communities, putting that investment back into the community for a warm & fuzzy feeling at the same time.

And if you are having money problems, seek advice sooner rather than later.  Citizens Advice, Step Change, Payplan and Christians Against Poverty offer free advice and help dealing with debts.  There are other debt management companies out there which charge for their services, but these organisations are free, and working in the interests of their users.  You aren't the first person to get into a financial mess, and you won't be the last. You won't be judged, and they can do an amazing job if you let them.

So start thinking now, and you can look forward to a great and stress-free Christmas.

I was not asked to write this post. All links are provided free of charge and come from my own knowledge of the agencies and situations involved.

Debt - a Four Letter Word

When I was approached recently regarding linking up with the Consumer Credit Counselling Service, the UK's leading debt charity, I knew it was something I wanted to write about.  I don't talk about my work on here, but I'm a debt & benefit advisor for a major children's charity.  Yes, you've heard of us, even if you've been living in a cave.  I don't talk about work because, apart from the fact that I try to keep home & work separate, it's important to maintain my clients' confidentiality.

But when CCCS got in touch, and wanted bloggers to help raise awareness of the work they do, and how debt affects families, I thought hard about how I could do this.  I tried to write a "day in the life" type post, but it's really hard to fictionalise, and I wouldn't want people to think they could identify someone.  But instead, I want to tell you a little about the kind of people I work with.

• I work mostly with families with children, because I work for a children's charity.  I also work with young people who have experienced homelessness, or are care leavers. Often they've got themselves into debt because they haven't got the family support networks to fall back on, but want the same choices as everyone else.
• Many of my clients are in relationships. Some are lone parents, but by no means the majority.
• Many of my clients are working.  Often for long hours and low pay, with little stability, which can be what puts them at risk of falling behind with payments.

We're in a hotbed for what MP Stella Creasy called "legal loan sharks", and many of my clients have debts to coin-op tv lenders, high-street hire-purchase companies, doorstep lenders, and payday loan companies, all with extortionate rates of interest.  They can quickly fall into a spiral of debt, as the repayments fast outstrip the loan amount, with no clear repayment date in sight.  (I am not linking to examples of any of the above types of lenders. They do not deserve the benefit of my traffic, and in no way do I encourage you to use them.)

Where clients have just a few debts and they ask me to do so, I negotiate with them and the creditors directly, to establish a repayment plan.  But in many cases, the debts are too large, across too many creditors, and in those cases, I refer clients to a Debt Management agency.  There's a lot of companies that offer this service, you'll see them advertise on tv.  But those companies make a profit out of the debt, which isn't really the point.  There are charities, of which CCCS is one, who offer this service for free.  Depending on the clients' preference, we choose which charity they want to be referred to, and I act as a liaison, introducing clients to charities, making sure everything is going OK, and that the clients are happy with the situation, are keeping within their agreed budget, and making the payments that are then distributed to their creditors.

Really, I wanted to write this post to make my readers aware that there is help available.  And that help can come in at any stage, but the earlier you start, the easier it is to get debts back under control.  Debt can happen to anyone, and no-one will judge you for asking for help.  If anything in this post rings true, please don't hesitate.

CCCS have put together a video, featuring one of their clients, explaining a bit more about what they do, and how they can help.  Take a look.



This is not a sponsored post. I have not been told what to write. While I was approached to write a post, I agreed to do so as this is a subject I feel strongly about. I have not received any compensation or incentive for posting it. Links are provided for your convenience only.