Christmas is over and 2012 is nearly here.  There seems to be less doom and gloom in the news generally but that may be because Europe is on holiday, wait until the New Year when everyone is back at work and then things will kick off again.  Already the financial magazines and articles are implying Greece and Italy are likely to default on their debts.

But for many Europe is the least of your worries.  You are concerned how you are going to manage financially, Christmas is over but now you facing your financial situation maybe you have spent more than you intended, or have been struggling to cope before Christmas and realise you can’t any more.

Your household bills are more expensive, food is even more expensive and whilst petrol is fluctuating you know your train fares will be increasing by about 5.9% although some will be up by 11%.

What can you do?  My suggestion is to work out your budget, listing all your every day expenses to ensure you have sufficient money to meet your travel costs, utility bills etc.  Any cash over and above that should be put towards repaying your credit cards as soon as possible.  Unless you are able to repay the debt immediately the interest you are charged monthly will not only start to reduce the amount you pay off each month, but interest is added to interest increasing the cost of the original item on a monthly basis.

If you have several credit cards it is important you pay the minimum amount on each card, but if there is one card with a very high interest rate and you have a large balance on it, it may be worthwhile repaying that one first with a larger sum than the minimum amount, however if you have a card with a higher balance and a lower interest rate you may find it better to repay this one first.

You should be able to see from the statement what the monthly interest fees will be as the information is shown on the statement.

If you find you can’t afford to make a payment, make an effort to pay something, otherwise you are likely to be charged a non-payment fee, adding to the amount to be repaid. If you really don’t have the money to pay you should speak to the credit card company to explain the situation, most companies will do their best to help you, especially, if it is obvious you won’t be able to make ongoing payments.

They will expect you to have a budget plan to be able to assess your capability to make payment.  Be willing to make an offer of £1 or more if you can, it is better for you to be seen to be making an attempt to continue making a payment rather than ignoring them as they may start the debt collection process which will add to your stress and worry.

Don’t be afraid to pick the phone up and speak with them or write a letter, phoning has a quicker response than writing and you will be able to ask questions to reassure yourself.

Should you want some advice you can approach Citizen Advice, to find your nearest office go to www.citizensadvice.org.uk, although you may have to wait for an appointment.  National Debt Line  www.nationaldebtline.co.uk will provide advice by email and you could also try the Consumer Credit Counselling Service by phone on 0800 138 1111 or Debt Remedy an anonymous  24 hour online counselling service at www.cccs.co.uk.

You are often referred to the CCCS by the credit card companies to confirm your financial situation, they won’t necessarily agree to any agreement until they have the reference number and report from CCCS.  CCSS will take details of your financial situation and advise you what they think you could do to improve your situation they will also acknowledge if you are unable to afford any payment.

If you need more info or want to go into a debt management programme, then contact me via my website http://karenbashford.com/contact-us/#