A HUDDERSFIELD finance expert is advising people to put £5 away each week to avoid debt next Christmas.
Tony Hood, chairman of Castle and Minster Credit Union, says people need to adopt responsible moneymanagement practice.
The advice comes as it’s predicted credit card usage will soar in 2012.
The Post Office says that 12 million cash-strapped people will rely on their credit cards in January after over-spending on the run up to Christmas, New Year and in the sales.
And research has shown that low income consumers are typically paying £174 a year on extra costs on credit from high street lenders by building up charges as they try to juggle their finances, a report by economic research company Policis warned today.
Now ethical money lenders Castle and Minster Credit Union, who has offices at the Chestnut Centre, Deighton, and Huddersfield Civic Centre One, has issued ten top tips to avoid further debt in 2012.
Mr Hood, chairman of the Union’s board of directors, said: “We would like to encourage all our members and potential new members to adopt responsible money management practice.
“We have a number of products that are designed to help members achieve this. For those who are not members, but struggle to manage their money and debt, please come and talk to us initially before approaching doorstep lenders, pay day loan companies or unauthorised lenders with extortionate interest rates, which could propel families into a cycle of debt.”
Castle and Minster Credit Union is run for and by members and offers low interest loans only when it knows members can afford repayments.
1 Plan early for Christmas 2012 – save just £5 each week, you will have £200 to spend by October.
2 Prioritise Spending – everyday bills such as rent, mortgage payments, utilities, food shopping bills and existing debts should be a priority, particularly debts with a high interest rate.
3 Pay for things outright – do not be persuaded to take out extended credit or loans with door-step lenders or pay-day loan companies with typical high interest rates. Ask how much you are repaying in full on the loan and compare.
4 Talk to Castle and Minster Credit Union about a low cost loan – if you need money in an emergency, such as replacing an household appliance due to breakdown.
5 Join Save Energy and Save and open a SAVY (Savings And Value for You) account with Castle and Minster Credit Union. You can save money on your energy and transport bills, reduce the amount of water you use and access low cost furniture, electrical goods, computers and free computer training.
6 Shop online if possible and pay bills by direct debit and save money on everyday purchases and bills.
7 Be Safe – don’t be tempted to borrow from unauthorised lenders. Convenience may prove to be a costly, false economy.
8 Look out for interest-free credit cards with low or no transfer fees and move your debt to enable you to pay off the actual debt instead of minimum payments only.
9 Don’t run up an overdraft without talking to your bank first.
0 Seek debt advice from the Citizens Advice Bureau on 0844 848 7970 or see www.citizensadvice.org.uk
