Christmas is a time of celebration, and for many people that involves overindulging on many of life’s finest things. From purchasing lavish gifts for friends and family to creating a feast that would last for weeks at any other time of the year, all of us spend too much.
Even though you may try to stick to a festive budget, it’s likely this will soon go out of the window. Overspending can lead to financial difficulties when the New Year arrives but there are various ways you can go about tackling them and sorting out your finances after Christmas.
When you’re in financial difficulty the first thing to do is evaluate incomings and expenditure to identify areas where spending can be cut down. In January especially, a lot of people cut down on things like eating unhealthily and drinking alcohol, so why not do the same with unnecessary spending?
Create a weekly budget and work out how long you’ll need to cut back on particular spending areas before all the excess you spent over Christmas will have been recouped. This may not be as instant as taking out a loan to sort out finances but it will avoid paying any excess fees.
If you have a few essential purchases that need making but don’t have the savings to afford them after spending so much over Christmas then taking out a guarantor loan from Trusttwo is one option. This could be used for a range of vital purchases, such as a new car to get to work or to cover previous expenses.
Guarantor loans require someone acting as your guarantor for the loan and are a great choice if you have a poor credit rating or are struggling to get an unsecured loan elsewhere. Just ensure that you will be able to meet the repayments to avoid further difficulties.
Debt Management Plan
When your spending has gone too far and if you’ve used credit cards, loans and other financial aids to excess then you may need a more serious financial solution. Setting up a debt management plan can offer this.
It is an agreement between you and your creditors that will create a plan so you can afford all the repayments rather than missing them and your debt spiralling out of control. There are companies that do this for a fee or you can attempt to renegotiate yourself.