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