Start the New Year with a debt detox

Local charity, Exeter Citizens Advice Bureau, is urging people to start the New Year with good resolutions to manage their money.

Last year Exeter Citizens Advice Bureau dealt with even more debt problems than before.

This totaled over 5,000 new debt cases, totaling £7.51million, the equivalent of more than 400 new debt cases every month.

The figure is expected to remain high into 2015 as the increased cost of living continues to bite.

Steve Barriball, Chief Executive, says: “People are paying a high price for being ill-informed and lacking confidence when it comes to crucial financial decisions.

"That debt ‘hangover’ from Christmas, coupled with the impact of the increased cost of living, could turn into a nightmare if people ignore it.”

Steve suggested the following ten top tips for 2015:

1. Check that you are not missing out on money that you should be getting in benefits or tax credits, tax rebates or allowances.
2. If you really need to consider taking out a loan, make sure you shop around and get the best deal. Look out for low interest rates.
3. 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 that you lose your home.
4. Plan to build up an emergency savings fund by saving a regular amount each month.
5. Shop around for the best savings rates and check regularly that it is still the best deal available.
6. Check out tax efficient ways to save money like cash ISAs (Individual Savings Account)
7. Be wary of low interest credit card transfers. Check the terms and conditions carefully.
8. You may be losing money by sticking with your existing bank; shop around, it‘s simple to change.
9. Don't automatically renew your car, holiday or house insurance without comparing prices.
10. Start planning ahead for next Christmas by setting a little aside each week and save it in an interest bearing account, such as a Credit Union or special Christmas savings account.

Steve continued: "All too often people come to us 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."

Following a well earned break over the Christmas period, the staff and volunteers of Exeter CAB will be back to work at 10am on Monday 5 January 2015.

For fact sheets on debt and money issues go to www.adviceguide.org.uk