A poll by the Money Advice Trust shows that one in six Britons has racked up debts over Christmas that they won’t be able to clear this month. The same poll shows that more than half failed to save up at all for the festive season. Maybe you’re included in this statistics but there may be a way out.
Many years ago, I used to dread the month of January. I even called it the “Longest month of the Year” for the financial pressure it comes with. The reasons being; you get paid earlier in December in time for Christmas which makes the next payday about 40 days away!!; and in the meantime, you spend more than usual on Christmas festivities.
For this situation not to repeat itself year after year, it is vital that you repay any debt you have incurred as soon as possible. So work out a payment plan even for the most modest of outstanding amounts.
A good way to do this is to call January a “Spend Nothing” month. Create a strict budget where you buy and pay for nothing but essentials for a month, and throw the spare cash at your debt. Cutting back on everything else (and that means everything – coffees, magazines, new clothes included) will mean you’ll probably surprise yourself at just how much money you seem to have! You may well find you can free up enough cash to clear that debt in just one month, but if not, try to do the same thing in February too. It’ll be tough but strangely satisfying, too!
I wish you success,Niyi Adeoshun
Money Management Coach
Author of "The Price of Financial Freedom"
(3 Essential Steps for Breaking the Cycle of Debt)