People ‘suffering from new year financial blues’

Individuals in the UK are worried about their financial situation.

The start of the year presents an opportunity for people to bring their spending…

Individuals in the UK are worried about their financial situation.

The start of the year presents an opportunity for people to bring their spending under control and make sure they are not parting with more money than they can afford to. Plenty of individuals will have made a new year's resolution to become debt free in 2013, but this is easier said than done.

Figures from the Samaritans show that they receive more calls about financial worries in January than at any other time of the year.

Rachel Kirby-Rider, executive director of fundraising at the charity, said: "Often there are things that people haven't addressed, or didn't want to address, before Christmas. They become very relevant when the credit card bills come in. A lot of people feel that things should be better in the new year – and then when they're not, they start to worry."

However, people should not make the mistake of burying their head in the sand if they have the new year financial blues. Instead, they could look to take out a debt management plan (DMP) in an effort to bring their problems under control.

Available to anyone who owes £1,500 to more than one creditor, the DMP will freeze any further interest and reduce monthly repayments. This means individuals can look forward to taking care of their debts, without having to worry about their living costs.

Psychotherapist Paula Hall told the Daily Telegraph the current economic situation will exacerbate the problems already attached to the January blues. She added Christmas is a time when short-termism is applied and so reality often sets in the following month.

Ms Hall thinks too many people go shopping in the January sales, even though they cannot afford to. One way that consumers can improve their mood is to be proactive about their financial situation, as this means they do not have to spend so much time worrying about money.

By Joe White

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