Wednesday January 17th is the poorest day of the year for Britons
Wednesday January 17th - Britain’s poorest day
Wednesday, 17 Jan 2007 16:27
Today, Wednesday January 17th, is the poorest day of the year for Britons.
That is according to new calculations from uSwitch.com, which show for more than 14 million households December is the most expensive month of the year, seeing spending hangovers last into mid-January.
The average family builds up 18 per cent of their yearly borrowing in December, when they spend double their normal monthly allowance.
Additionally, millions of families receive their December pay cheques one or two weeks early, seeing the wait for payday increase from 30 to as many as 44 days.
This long wait, coupled with the after-effects of December spending, sees Britain's bank balances running at their lowest point on January 17th, uSwitch calculates.
To get through this lean period, UK householders are taking drastic action, with 20 per cent cutting back on basic heating and phone calls, 18 per cent selling their possessions - either privately or via e-Bay - while 33 per cent use credit cards and store cards rather than debit or cash and 51 per cent simply stay at home more often.
To try and help people through this poor period, credit reference agency MyCallcredit has offered the following tips to those struggling with debts:
Don’t panic.
Do try to pay off more than the minimum amount on your card balances. Aim for at least ten per cent.
Do prioritise. Try to pay off cards with the highest interest rate first.
Do get in touch with your creditors as soon as possible if you are unable to make your payments. Most will be sympathetic and allow you to make reduced payments on a temporary basis.
Don't ignore letters and phone calls from your creditors if you miss any payments – get in touch with them and explain your circumstances, otherwise the lender could register a default or even a county court judgment against you. This would remain on your credit file and affect your ability to obtain credit for six years.
Don't be tempted to run up further debts on store and credit cards.
Do your sums – consider using savings to pay off credit card balances. The interest received on savings is likely to be far less than the interest paid on credit cards.
Do think carefully and seek advice before applying for more credit to repay your existing creditors - it will work in some situations as you may be able to reduce the amount you are repaying each month, but it is likely that it will take you longer to repay your debts and you are therefore likely to pay more interest.
Do contact your local Citizen’s Advice Bureau, the National Debtline or Consumer Credit Counselling Service for advice and support - they all offer a free debt advice service.
Do get a copy of your credit report so you can check exactly what you do owe.
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