New Year’s Resolutions and Managing Your Debts
As recently as January 2020, many people had been showing their results of a ‘ten year challenge’ on social media platforms to mark the beginning of the new decade.
The average household in Scotland owes over £15,000 on unsecured debts such as credit card debts, bank overdrafts and unsecured loans. Add in years of austerity, wage stagnation and the rising cost of borrowing, it’s little wonder that many people with financial difficulties over that same period have declined the opportunity to join in on this challenge.
Christmas Debt Hangover?
The average person in Scotland spends over £1,000 a year on Christmas and a sizeable amount of that has gone on gifts. Without assistance, it is easy to imagine that by the next time the 10-year challenge comes around, many people in financial difficulties may not be in a better position.
This is also the time of year for new year’s resolutions to be made.
Lose weight and join a gym, get a new job, book your dream holiday amongst others. And, many people may be contemplating a life after debt as their New Year’s resolution.
While it’s true that quitting smoking, drinking and eating fewer takeaways will reduce your outgoings considerably, this alone may not be enough to impact your overall debt total.
New Year, Old Debts?
Many debt-help guides talk about being able to switch credit cards, consolidate debts with loans and advise ways of saving money through lifestyle changes. All great suggestions of course, which will help many families in Scotland but for those people at the severest end of the credit ratings spectrum, some of these solutions are unavailable or ineffective.
Credit card providers including Royal Bank of Scotland, TSB and Barclays had been instructed in 2018 by the FCA to tackle what they describe as ‘persistent credit card debt’ in a period of 18 months and this means that those credit card lenders will be forced to close and suspend accounts that have been making minimum payments to their credit card balance over that same period. These changes are likely to most impact those with the most overall debts more than any other typical borrower.
What Is Blue Monday?
Look out for your loved ones in the run up to January 18 2021, described as Blue Monday.
Blue Monday is a term used to describe the most depressing day of the year, the third Monday of January every year and is calculated using a formula using multiple factors. This includes our typical miserable Scottish weather conditions and our lack of daylight. The difference between debt accumulated and our ability to repay. The time since Christmas and the time since failing our new year’s resolutions.
Low motivational levels and feeling of a need to take action. This is the time most people with financial difficulties are likely to feel their Christmas debt hangover the most.
Learn more in our article Together we can beat Blue Monday.
New Year, New You!
If you have decided that next year is going to be the year that you start to become debt free, regardless of your debt amount, our experts can work with you to provide solutions that suit your circumstances.
Perhaps, you want to ensure that by the next time a ten year challenge comes around, you’re able to join in and add a positive experience.
Our experienced debt advisers provide Scottish debt help and their advice has helped give debt help in Scotland since 2009. All advice offered is completely non-judgemental and confidential. Why not give us a call today and find out how we can help?