Published On: Mon, Dec 26th, 2022

Tips for Britons facing mounting debt after Christmas – ‘Don’t ignore it!’ | Personal Finance | Finance

Prices for food and energy bills are set to increase next year, so it’s important for those in debt to think about their finances to avoid their situation getting worse. Salman Haqqi, personal finance expert at, has shared his top tips for how to deal with debt.

Don’t avoid the issue

The finance expert said the “worst thing” a person in debt can do is ignore the money they owe.

A person’s outstanding amount will only increase if they do nothing to address the situation, and they will have more interest to pay.

Prioritise the debts that one has

Some debts need to be paid off more urgently than others. It’s worth making a list of the debts that are owed, so a person knows exactly what they are dealing with.

Secured loans such as mortgages and rent need to be dealt with before moving on to unsecured loans, such as credit cards or overdrafts.


Discuss the problem with the creditors

The Banking Code says that banks must be sympathetic towards a person’s missed payments, so it’s worth getting in touch with the lenders to explain the situation.

They may have a manageable repayment system to offer, helping a person pay back what they owe in smaller monthly amounts than what they are due to pay.

Write out a budget

A budget is a key tool to help a person find out what their expenses are when compared to their income.

This will establish how much extra spending money a person has to use once their necessities are paid for.

A budget can help a person find out how much they can spend on debt repayments, and also will highlight where they are overspending, and where cutbacks are needed to avoid further debt.


Before a person reaches out to one of these groups for help, they may want to make a list with this information:

  • How much they owe
  • The interest rate and how much they repay each month
  • Any income they earn
  • The bills they need to pay each month.

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