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National charity Citizens Advice is urging people to start the New Year with good resolutions to manage their money. Last year Citizens Advice Bureaux dealt with over 1.4 million new debt problems, the equivalent of 5,300 debt problems every working day, and the figure is expect to rise into 2007.
Citizens Advice says people are paying a high price for being ill-informed and unconfident when it comes to crucial financial decisions. That debt ‘hangover’ from Christmas could turn into a nightmare if people ignore it.
The charity is also encouraging people to use the time over the holiday period to check that they are receiving all the benefits they are entitled to. In October Government figures for 2004/05 showed that between £4.8bn and £8bn in means-tested benefits was uncollected. The money was a combination of income support, housing benefit, council tax benefit, job-seeker's allowance and pension credit.
The charity suggests the following tips for 2007:
- Check that you are not missing out on money that you should be getting in benefits or tax credits, tax rebates or allowances. Your local CAB can help you with this.
- If you are considering taking out a loan, make sure you shop around and get the best deal. Look out for low interest rates.
- Be wary of consolidating your debts, get advice and don’t put your home unnecessarily at risk. Defaulting on a loan secured against your home could mean you lose your home.
- Plan to build up an emergency savings fund by saving a regular amount each month
- Shop around for the best savings rates and check regularly that it is still the best deal available
- Check out tax efficient ways to save money like cash ISAs (Individual Savings Account)
- Be wary of low interest credit card transfers. Check the terms and conditions carefully.
- You may be losing money by sticking with your existing bank, shop around, it‘s simple to change.
- Don't automatically renew your car/holiday/house insurance without comparing prices.
Teresa Perchard, Director of Policy for Citizens Advice said: "All too often people come to a CAB when they've already reached crisis point or can no longer cope with their problems. By carrying out a regular financial overhaul and taking some preventative measures many problems could be averted before they become crises. Traditionally people make New Year’s resolutions to change bad habits - we're urging people to do the same with their finances."
For fact sheets on debt and other money issues go to  www.adviceguide.org.uk or to find your nearest Citizens Advice Bureaux.
Notes to editors:
- The Citizens Advice service is a network of independent charities that helps people resolve their money, legal and other problems by providing information and advice and by influencing policymakers.
For more information in England and Wales www.citizensadvice.org.uk
For more information and 2008/9 service statistics see Introduction to the service
For 2008/9 service highlights see the Citizens Advice service impact report
For 2008/9 social policy campaigning highlights see the Citizens Advice social policy impact report
- The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- Most Citizens Advice service staff are trained volunteers, working at over 3,300 locations across England and Wales.
- Citizens Advice Bureaux in England and Wales advised 2 million clients on 6 million problems from April 2008 to March 2009
- Advice and information www.adviceguide.org.uk
- Volunteer hotline 08451 264264 (local rate)
- Citizens Advice Guide to your rights, second edition: January 2008 - over 600 pages of practical, independent CAB advice. An invaluable resource for any bookshelf - available from all good bookshops; price £11.99; ISBN: 9780141034089
- Follow Citizens Advice on Twitter: twitter.com/CitizensAdvice
- Subscribe to Citizens Advice press releases via RSS news feed: www.citizensadvice.org.uk/pressoffice
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