Top tips for overcoming New Year debt hangovers

Credit reporting agency and debt collector Dun & Bradstreet says the worst thing anyone suffering a New Year debt hangover can do is ignore the problem.

“We often see a spike in defaults in the first half of the year, which results from credit used over the Christmas period,” Dun & Bradstreet chief executive Gareth Jones says.

“Apart from causing financial pain, these situations can also impact people's ability to access future credit as the default stays on a credit report for up to five years.”

His top tips are:

  • Close any bank accounts or credit facilities that are not essential.
  • Don't ignore letters or phone calls about debts. If you owe money, the best thing you can do is repay it.
  • Pay attention to all your bills and pay them in full and on time.
  • Avoid borrowing money to get out of one debt, and don't use one credit facility to pay off another.

Source: Herald Sun