Free debt help charity offers tips to those Fifers struggling with finances after Christmas

Burntisland Parish Church, which partners with national charity Christians Against Poverty (CAP) has been providing a free debt help service in the local area for a number of years, and following the festive people they are reminding people that they are here to offer support.

Pamela Henderson, CAP’s Burntisland and Kirkcaldy area debt centre manager, said: “Christmas is often an expensive time of year, so it’s common for us to see a rise in people who are struggling with their finances in January and February, especially as credit card bills land.

"This year we expect things will be an even bigger struggle for many people.

"When you consider how the cost of living rocketed throughout last year, with energy bills having doubled or tripled, and set to rise further this year, many people have not seen their income increase alongside these things, but in fact have dropped.

"All these things are adding further financial pressure, stress and anxiety to many households in our area. We hope these five simple steps will be useful to those who are entering 2023 in debt or financial struggle. We want them to know that we at CAP are here to offer free debt help if they need it.”

Here Pamela shares CAP’s five steps to help deal with debt in 2023:

Don’t be afraid to face your debt

Pamela explains: “It sounds obvious, but many people we speak to find it a challenge just to acknowledge they are in debt and can’t get themselves out of it. When you’re in debt you can feel embarrassed, scared and ashamed, but the reality is it’s a problem that millions of people face, for a variety of reasons, so you’re certainly not alone.

"There’s often a temptation to hide away from the problem but talking about it can be the first step to dealing with it. Some people might choose to tell a loved one or a close friend first, others may prefer to call a free debt help charity, like CAP, so they can begin to get help with the problem. Deciding to face your debt is hard, so asking for help from anyone requires courage. We want to encourage you to be brave and do so.”

Speak to service providers

“If you are struggling to pay your bills while also trying to pay off your debts, we’d strongly advise you to speak to your service providers, like the council or your energy company or the bank, so they understand the difficulties you’re experiencing,” said Pamela. “They speak to many people who are struggling with all kinds of things, askide from debt, and will often be able to understand your situation and point you in the right direction. The more information they have, the more they can try to help you.”

Seek free debt help

Pamela continued: “People sometimes don’t realise it, but there are free, non-judgemental debt help services, based here in our local area waiting to help you and there’s no shame in receiving a bit of help. They can help you prioritise your debts and take steps towards becoming debt free. You don’t need to feel like you have to tackle this problem all on your own.

"If you’re in debt, contact CAP or another free debt help service, for support. They won’t judge you, they just want to help you.”

Create a New Year budget for 2023

“It sounds simple,” said Pamela, “but making a budget and keeping track of how much you spend each month can help you feel in control of your finances and help protect you from getting into debt again in the future.

"Write down everything you spend in an average month, see what you can cut back on a little, and keep updating it as your circumstances change. Hopefully by doing this you’ll also find ways to save a bit of money, by removing things from your budget that you don’t need, or that you can replace with a cheaper alternative.

"Creating an emergency savings pot is also a really simple tip but such an important one for easing financial pressure and staying out of debt. Even if you can only save a little, that can help when some unexpected expense crops up out of nowhere.

"You could use that cash if your car breaks down, your boiler suddenly decides to stop working or if a sudden change in circumstance leads to a drop in your income. Maybe put your savings pot in a separate bank account so there’s less temptation to dip into it unless it’s an absolute financial emergency.”

Avoid borrowing more if you can

"It’s not always easy but a great approach is to only buy what you can afford to buy, according to your budget,” said Pamela.

"If you really have to make use of credit or buy-now-pay-later deals, always take time to check the interest rates and terms and conditions first to make sure you fully understand what you’ll have to pay back in the long run.”

Anyone looking to contact the team at CAP should call 0800 328 0006 for a chat about their situation, or visit www.capuk.org to find out more.