THE Office of Fair Trading has the following information on post Christmas debt for isleofman.com readers:
Each year around this time the Isle of Man Office of Fair Trading (OFT) sees an influx of new clients for its Debt Counselling Service.
It’s easy to understand why - many of us get carried away when Christmas spending. But so often the euphoria of Christmas gives way to the desperation of debt.
What can you do to help yourself?
Don't ignore it
If you are facing financial difficulty then the vital thing is to talk to someone. The worst thing you can do is let it run on and ignore the problem.
The longer you leave the problem the bigger and more daunting it will become, the more interest and other charges you will incur and the more likely it is that you could face legal action.
As hard as it may seem the first thing you must do is talk to the people you owe money to - don't just stop payments without explaining why. They can sometimes be more understanding than you'd expect.
Prioritise
The next thing to do is to work out which debts are your priorities - mortgage, rent, tax, child maintenance, utilities - and pay them first. Don't fall into the trap of paying whoever shouts loudest first.
Work out a budget that covers all your income and essential out goings. Only offer to pay off debts at a rate you can keep up - it is easy to be panicked into offering more than you can afford.
Beware of a quick fix
A classic response to debt problems is to borrow more money to pay off the debt. This is rarely the best option.
If you are having financial problems you should at least investigate ways to deal with your difficulties without borrowing more.
Be particularly wary of companies that offer to lend you money to 'solve' your debt problems especially if they want you to take out a second mortgage or a high interest loan.
Get advice
The OFT has a free Debt Counselling Service with fully trained staff who will discuss your problems with you, totally confidentially, guide you in sorting them out and liaise with your creditors to organise your debt repayments.
Alternatively visit the OFT’s website – www.gov.im/oft - which will give you more information and a budget sheet to work with as well as a series of interactive tools which you can use to help you manage your debts.
But remember this does not mean you are on your own - the OFT is there to help if you need more advice or you need help writing a letter or filling in a court form. Please call 01624 686510 to make an appointment.
