Latest column from Denbighshire Citizens Advice is:
Q: This
time of year is always so expensive, with presents to buy and heating bills
going up. I’ve seen offers for ‘Buy Now Pay Later’ when I’m doing online
shopping. It seems like a good way to spread the cost of some of the things I
need to get for my family but how can I make sure I don’t get into debt?
A: With
everything getting more expensive, this is a really difficult time for a lot of
people, so it’s sensible to be thinking about how you can manage. There
are lots of things you can do to try and stay in control of your money.
Before
you start spending, work out exactly what money you have coming in and going
out each month. Be realistic about what you need for essentials like food and
travel. Take a look at the budgeting
tool on the Citizens Advice website. This can help you set a budget you can
stick to.
You’ll
also be able to find tips on how
to reduce your regular living costs, which might be helpful if you’re
struggling to keep within your budget.
While
it can be tempting to split payments with schemes like Buy Now Pay Later
(BNPL), you’ll need a plan to pay the money back. If you're using something
like that repeatedly, you might be managing for now, but it could also be a
sign that it's unaffordable in the long run. Keep a record of how much you owe
in total.
Always
make sure you understand what you’re signing up for, how you’ll make the
repayments and what will happen if you can’t pay on time. It’s important to
check the returns process for both the retailer and credit provider. Paying
through BNPL may also affect the cost of postage returns if you’ve ordered
online. The riskiest thing about it is that you’re not guaranteed to be
protected if something goes wrong. For example, you can’t go to the Financial
Ombudsman Service if you have a complaint.
If
you find yourself turning to credit cards, your overdraft, or store cards for
your spending, keep track of what you owe. You should prioritise paying your
rent or mortgage, plus energy bills and Council Tax first, because not paying
these has the most serious consequences. On the Citizens
Advice website, you can find information on what bills to prioritise and
how to manage debts. There’s also information on the
support available for paying these and other bills.
If,
like many during this crisis, you find you can't afford to reduce your debts
after paying your priority bills and essentials, seek advice as soon as
possible. If you need specific support or don’t feel able to manage your
situation alone, call our debt helpline: 0800 240 4420.
