Citizens Advice Fareham
The Charity for Your Community
Maximise your income with benefit take up if you are entitled
Explore your circumstances to see if you are entitled to any State benefits that you are not claiming. www.citizensadvice.org.uk
Devise a realistic budget
Look at your total weekly or monthly income from all sources. Download a personal budget sheet and calculate your spending needs for each week or month to cover your essential living expenses. Decide if there's anything left to make an offer to your creditors.
Prioritise your creditors
Divide your creditors into priority and non priority according to the action that they may take if you do not pay them. www.citizensadvice.org.uk
Make realistic and sustainable offers of payments to your creditors
Offers of payments based on what you can afford rather than what the creditor is demanding. www.citizensadvice.org.uk
Explore your legal options
Look at a range of legal options that are available to you on www.citizensadvice.org.uk
Get the facts
Factual information on a range of debt related subject from “Bailiffs” to “What happens if you are taken to Court for money you owe” www.citizensadvice.org.uk
We can assist you with any of the above
Christmas Costs and Payday Loans
Christmas can cost 72% more on a payday loan warns Citizens Advice Fareham
Citizens Advice Fareham is calling on shoppers to think twice before taking out a payday loan to cover the costs of Christmas, which could bump up the final amount by almost £600.
This year, Citizens Advice Fareham has helped people with 1031debt issues, including 9 problems with payday loans.
New analysis from national Citizens Advice finds the average spend for Christmas jumps from £821 to £1,413 if paid for with a typical payday loan of three months.
As people start putting the finishing touches to their shopping lists, Citizens Advice Fareham is encouraging people across Fareham thinking about using credit to pay for presents and festive staples to make sure they understand the final costs, once interest and fees are accounted for.
National Citizens Advice calculated how much the average cost of Christmas would rise if it was paid for by a payday loan, credit card or overdraft and then repaid three months later. Its results show:
~ Dipping into an arranged overdraft can hike up costs by 15% to £945.
~ Paying for Christmas on a credit card can push the total cost up by 8.4% to £891.
The charity also ran an analysis on a number of popular Christmas goods to highlight the significant price hikes if paid for with credit:
~ A turkey that costs £25.00 could end up costing £43.00 on a payday loan.
~ A self-balancing scooter ‘hoverboard’ priced at £299 could set buyers back by £514 on a payday loan and £344 on an overdraft.
~ A tree retailing at £45 could cost £77.40 on a payday loan and £48.80 on a credit card.
~ A Star Wars Millennium Falcon toy (RRP £92) could cost £158.24 on a payday loan and £105.80 on an overdraft.
~ A 50 ml bottle perfume that retails at £44.50 could cost £76.54 on a payday loan.
Citizens Advice Fareham Chief Officer, Anita Muff said:
“Paying for Christmas on credit can spell debt problems in the new year and onwards.
“If you do decide to turn to credit, make sure you understand all the costs involved and whether you can afford to pay it back.
“As Christmas gets nearer, it is a good idea to put together a budget and stick to it. If you are worried about your finances, Citizens Advice Fareham can give you help about how to avoid starting 2016 in debt.”
~ Spend time shopping around, researching what deals are on offer and getting advice.
~ Always look at the total amount you will have to repay when borrowing money. A shorter repayment period may be better than a slightly lower Annual Percentage Rate (APR) amount.
~ Never borrow money on the spur of the moment and think about payment options beforehand. Work out your budget and stick to it so that you can afford the repayments.
~ Be careful about borrowing more money to pay off existing debts. Additional borrowing can seem like a good idea and may well help in the short-term, but can too often lead to more serious longer-term problems.
For more information contact:
Biddy Mayo Operations manager on 01329 237 121