Let’s Talk Money - How to get your finances back on track after Christmas

Date: 27 January 2025

Time: 04:00

For many, Christmas is the most expensive time of year, and it can be challenging to get your money back on track.

If you are beginning the year with large credit card debts to pay off or overdraft fees, facing the reality of buy now pay later, you’re not alone.

As part of the multi-agency Let’s Talk Money initiative, here are some tips from the Citizens Advice Bureau here in Orkney to help you get back on track financially after the festivities.

Update your budget

Household expenses have risen, and even small prices increases all add up. Review your budget at the start of the year as this will help determine your monthly disposable income more precisely.

Set reasonable goals

If you wish to pay off your debts this year or save a sum of money, setting these goals at the start of the year is ideal. To ensure you achieve them, it’s important that they are reasonable and realistic. Examine your finances closely and keep track of what expenses your income must cover and what you should do with any additional income.

Organise your repayments

The New Year is the best time to review your debts, including credit card debt and small loans. Start by listing all your current loans, their interest rates, and repayment terms. If there are no 0% offers available, focus on paying off the debts with the highest APRs (annual percentage rate) first, especially credit card debt.

Explore cheaper alternatives

Check out comparison websites to find less expensive options and better deals. Consider switching to a lower cost supermarket.

Job opportunities

If there’s no chance of a pay rise, January and February are often excellent times to explore new job positions. Or perhaps a second job is manageable and could help bolster your household income.

Maximise your income

For some extra income to help you get your finances back on track, you can sell any items that you no longer need or have any use for. This can go into your savings or go towards helping you pay off any expenses. Make sure you are getting all the benefits you may be entitled to – Citizens Advice can help with this process.

Plan ahead

After evaluating your budget, you’re already in the planning mode, but why stop there? It is time well spent to prepare for events that you know will cost you money this year. You’ll be less likely to have to use credit to pay for gifts if you have money set aside for them.

Orkney CAB Manager, Alison Gunn, said: “If you are struggling to make your money last or you're worried about how you’ll pay your bills, then come and talk to our money talk team advisers. If you are in debt and don't know what to do, get in touch and we can assist with making a plan.

“The worst thing folk can do is bury their head in the sand and think that it will all somehow disappear. Taking those first steps on the debt road to recovery can be difficult, but also a huge relief people tell us.

“Remember you are not alone; many people have found themselves in financial difficulties, but there is lots of local and national support available. But you have to seek out that help.”

To take those first steps to clearing your debt, contact Citizens Advice Bureau Monday to Friday on 01856 875266 or emailbureau@orkneycab.casonline.org.uk

The Bureau, Anchor Buildings, 6 Bridge Street, Kirkwall is independent and offers free and confidential advice from trained volunteers supported by professional advice.

Organisations that can help with debt and money

These organisations are supported by the Scottish Government and can help with information about debt and money. They will not charge you for advice and information.

Advice Direct Scotland – online and live chat advice for people in Scotland

Christians Against Poverty – online and in person advice

Citizens Advice Scotland – in person advice at your local Citizen's Advice Bureau or on the phone through the Money Talk Team (0800 028 1456)

National Debt Line – online and telephone advice about debt (0808 808 4000)

StepChange Debt Charity – online and telephone advice about debt (0800 138 1111)

Money Advice Scotland – tools to help with debt

You can also get help from the Money and Pensions Service Money Helper.

Social housing tenants can also get help and advice around rent arrears from the Council or Orkney Housing Association If you’re on a low income, or getting certain benefits, assistance could be available from the Scottish Welfare Fund.

Under the Fund, two types of grant are available - Crisis Grants (one-off payments) and Community Care Grants (helping people leaving care to live on their own, or to stay in their own home or to help folk facing exceptional pressures and needing essential household items).

Further information is available on www.mygov.scot/scottish-welfare-fund

If you wish to discuss if you are eligible for help via the Scottish Welfare Fund contact Orkney Islands Council on 01856 886312 or emailSWF@Orkney.gov.uk

Category:
- Benefits and Grants
- Community

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