Christmas will be different for all us this year, we may not be able to see our friends and loved ones in the usual way. If you have children or grandkids you may want to make it extra special because of the pandemic and there will be lots of temptation to do this this. But come the new year if you are left with either an expensive doorstep loan, more credit card debt or the buy now pay later is building up along with the worries of being able to cope financially , then January can feel like a long bleak month.
Avoid doorstep lenders
Doorstep lenders can seem like an easy solution for purchasing those extra gifts. A doorstep lender typically lends between £50 and £500 over short periods of time with repayments collected weekly or fortnightly at your home. But they have a much higher interest rate than a bank loan or a credit card.
If you borrowed £200 for a year from a doorstep lender you would repay far more than if you borrowed money on a credit card or took out a bank loan. Typically a doorstep lender may charge an average of 38% interest on the money borrowed compared to an average of 22% interest charged by a credit card company or a bank which over 52 weeks can add up. (Source: Money Advice Service).
Get help and advice
Importantly, there is help and advice available now to help you with any financial decisions you need to make.
If you are worried about paying for Christmas and your current commitments, please don’t leave it until the new year, talk to someone now. You can contact Martin Bell Money & Benefits Adviser or your Housing Officer, telephone 0800 587 0211 or email [email protected]@jrht.org.uk and visit Money, benefits and debt advice | JRHT.
We have a crisis support fund for emergencies such as if your cooker or washing machine breaks down and you have no other means of replacing them and we can assist you to make an application to your local authority financial assistance fund. Please get in touch - we are here to help.
There are other organisations local to your community that can also provide help and support online or over the telephone.
|Citizen Advice York|| |
Offering confidential, free and impartial advice on debt issues which is delivered by a specialist Debt Team.
Please contact our Administrator Maria on 07526 550594
|Scarborough||Citizen Advice Scarborough||Telephone advice line 03444 111 444 to talk about how they can best help|
|Hartlepool||Debt Advice Trust|| |
Debt advisors to help you become debt free. Call on 0800 085 0226.
|Selby||Selby Advice||Selby District Advice and Information Network where you can find advice on a range of topics|
|East Yorkshire||East Riding Council||What to do should you find yourself in debt following the Christmas period.|
Other organisations and helpful advice
Leeds Credit Union Real life case studies about how they have helped people with debt
The here and now - top tips from Mums-net How to have a brilliant christmas on a budget
For the future, spring clean your regular outgoings and check if you can switch any to save money. Visit money advice service for tools and tips on budgeting, join on the online money course from CAP.
Join a recognised Christmas Club savings club and get ahead for Christmas 2021. Leeds Credit Union one of our partners has a range of products that can help with budgeting, saving and if necessary affordable small loans.