Report to the People
Debt
The facts that the nights are drawing in and there are adverts for electric razors on television can mean only one thing: Christmas is fast approaching. A time of presents, celebrations, mince pies and, of course, debt.
Most of us will greet our January credit card bill with a sharp intake of breath and a stiff drink. However, we hope that if we stick to our New Year resolutions (eating fresh fruit, drinking nothing but water and avoiding the betting shop) for the traditional 6 weeks, things will be back to normal by February.
But what if your debts are more serious? What if you are still paying for last Christmas when the bills for this year start to arrive?
Consumer credit is a good servant, but a cruel master. While it lets us spread the cost of large purchases, if it takes control the results can be disastrous. If your credit rating is damaged by debt, you can have problems getting a loan for a car you need for work, or for vital home improvements. You are forced to seek alternative sources of credit from companies who, while being more relaxed about taking credit risks, are far more expensive.
And so the cycle deepens.
The figures show that consumer debt is on the increase. Spending on credit has more than doubled in the past 4 years. Over 1000 people contacted the Inverclyde Money Helpline in the past year alone and debt counsellors have handled £1,870,811 worth of debt. That’s nearly £2000 for every caller to the line.
I was glad to read in the Telegraph last week, therefore, that the Money Helpline has teamed up with the Office of Fair Trading to encourage us to use credit sensibly in the run up to Christmas.
They have 3 simple messages. Think before you take out credit; shop around; and if you are in debt - seek help quickly.
In a week in which the Scottish Parliament voted to abolish Warrant Sales - a method of debt recovery which has humiliated and distressed debtors for years - we have been reminded of the misery and despair caused by debt.
I wish this campaign every success and hope it will lead to more of us having a happy Christmas and a less painful New Year.
If you have a debt problem, you can contact the Inverclyde Money Advice Helpline on 01475 714 220. To get a free budget planner and APR reckoner, call Freephone 0800 085 2223
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