Don't get into debt over Christmas

Published by philmc7 for Knowsley Housing Trust in Housing

Knowsley Housing Trust is giving out some seasonal financial advice this Christmas.

The housing association, which manages over 13,000 properties, is advising customers that although it is easy to spend too much over Christmas, they should budget carefully.

“It is really tempting to overspend at this time of the year but you should really make sure you still have enough money to pay your bills and rent,” said Liz Bulmer, Income Maximisation Manager from KHT.

“A lot of people take out credit to pay for presents, max out their credit cards or overdraft and take up many ‘buy now pay later’ deals.  Although these deals are useful at this time of the year you need to make sure that your essential bills are taken care of first.”

KHT says that simple budgeting can help get the most out of Christmas, without scrimping on festive cheer.

“There are some easy steps you can take to be financially secure.  Draw up a budget and work out what you have to spend after all your essential bills have been paid, be realistic and don’t spend more than you can afford,” added Liz.

Over this time of the year, loan sharks are often used by people struggling financially and KHT is urging residents not to turn to illegal lenders.

Liz said: “Loan sharks prey on people in vulnerable situations. Many people can be tempted to borrow from them as it can seem like an easy option at the time, but debts spiral out of control.

“People who fall behind with payments are often subjected to the threat of violence and can even be forced to turn to crime to help pay for the loan.”

KHT is instead recommending that customers use credit unions to access free financial advice, cheap loans and savings.

Huyton-based Enterprise and Kirkby-based Knowsley Mutual are two credit unions that are open to anyone who lives and works in Knowsley.

“Credit unions offer great financial support with saving plans, current accounts and great value loans,” says Liz

“They give people the ability to gain control of their finances, get out of debt and escape high interest lenders.”

KHT has set up an advice line for customers wishing to know more about credit unions.

For more information call 0151 290 7477 for a private and confidential discussion.

Residents can talk to a KHT debt advisor on 0151 477 6004 or 0845 122 1300.