Property News > Paying for Christmas

Paying for Christmas

It's that time of year when we all become frazzled with the chores of Christmas, the biggest of which is undoubtedly the Christmas shopping. Finding original presents for everyone can be a real nightmare and when money is tight the whole task is even more fraught.

Shops are reporting that trade is light this year - no surprise in view of the state of the economy and people's fears over job losses. Those who have been unlucky enough to already lose their jobs will be looking to cut costs wherever they can, whilst others, such as the thousands employed by Woolworths, will be looking to the future with trepidation.

It is tempting to put the Christmas purchases on the credit card and worry about the bill later, but the income of many households has fallen and cannot be compared to this time last year when we were all spending more freely. Those who have been unable to keep up with repayments on their credit cards will find that the interest will mount up considerably and if the debt cannot be controlled, interest will become payable on the interest.

Of course, the best policy is to use cash, not credit, for Christmas shopping. But when we do use credit cards, keeping interest payments under control is something we all should try to do. The nought per cent deals are few and far between, but it's still worth shopping around to make sure you are not paying more than you have to. 

Bad debt will affect your credit rating and this will make it difficult to get future loans or credit. If debts threaten to get out of control you need to take action. Working out your monthly or weekly budget is always the first step and there are free services that will help you do this. Be honest with yourself about how much you spend each week - even slight changes to your lifestyle can mean that you make savings. Being aware of what you spend and how you spend it is a key part of controlling your outgoings. It may be possible to manage your debt by agreeing to pay off smaller amounts of your loan or extending the time period over which repayments are made. Always talk to your lender(s), as ignoring letters and phone calls will only make your situation worse.

Financial advisers generally regard bankruptcy as very much a last resort. In some cases it is unavoidable but it is not a 'soft option' and has many repercussions. One way of reducing or eliminating your debt could be to sell your home. This may seem a drastic step, but with sell and rent back agreements you could stay in your home as a tenant rather than an owner. Make sure you know all the terms of the contract before you sign up to any such scheme, and deal with a reputable company such as Property Rescue.

For information on sell and rent back, contact Property Rescue. One of their advisers will talk to you in complete confidence and without obligation.


 

It's that time of year when we all become frazzled with the chores of Christmas, the biggest of which is undoubtedly the Christmas shopping. Finding original presents for everyone can be a real nightmare and when money is tight the whole task is even more fraught.

Shops are reporting that trade is light this year - no surprise in view of the state of the economy and people's fears over job losses. Those who have been unlucky enough to already lose their jobs will be looking to cut costs wherever they can, whilst others, such as the thousands employed by Woolworths, will be looking to the future with trepidation.

It is tempting to put the Christmas purchases on the credit card and worry about the bill later, but the income of many households has fallen and cannot be compared to this time last year when we were all spending more freely. Those who have been unable to keep up with repayments on their credit cards will find that the interest will mount up considerably and if the debt cannot be controlled, interest will become payable on the interest.

Of course, the best policy is to use cash, not credit, for Christmas shopping. But when we do use credit cards, keeping interest payments under control is something we all should try to do. The nought per cent deals are few and far between, but it's still worth shopping around to make sure you are not paying more than you have to. 

Bad debt will affect your credit rating and this will make it difficult to get future loans or credit. If debts threaten to get out of control you need to take action. Working out your monthly or weekly budget is always the first step and there are free services that will help you do this. Be honest with yourself about how much you spend each week - even slight changes to your lifestyle can mean that you make savings. Being aware of what you spend and how you spend it is a key part of controlling your outgoings. It may be possible to manage your debt by agreeing to pay off smaller amounts of your loan or extending the time period over which repayments are made. Always talk to your lender(s), as ignoring letters and phone calls will only make your situation worse.

Financial advisers generally regard bankruptcy as very much a last resort. In some cases it is unavoidable but it is not a 'soft option' and has many repercussions. One way of reducing or eliminating your debt could be to sell your home. This may seem a drastic step, but with sell and rent back agreements you could stay in your home as a tenant rather than an owner. Make sure you know all the terms of the contract before you sign up to any such scheme, and deal with a reputable company such as Property Rescue.

For information on sell and rent back, contact Property Rescue. One of their advisers will talk to you in complete confidence and without obligation.

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