No one likes to say bah humbug at Christmas time but in the current climate it is wise to take a precautionary view, says RSM Tenon, leading accountants and business advisers.Most businesses pay their employees early in December to avoid the long close down many offices have over Christmas and to let their employees have their pay when they most need it. However, they may not be doing their employees any favours! The temptation to enjoy the festivities, purchase extra presents and buy more food and drink using part of that early pay day without considering the long dark cold January ahead can be disastrous.
Mark Sands, head of personal insolvency, said: "There are approximately 39 days (six weekends) between most people’s pay packets in December and their next pay day in January. Everyone wants to enjoy the Christmas festivities with friends and family but without budgeting for the long month of January many people will find themselves turning to credit to bridge the gap."
After overspending in December, using credit cards or pay day loans can be a tempting option in January to cover the essential costs. However, be warned - you could be hit with a shock at the end of the month when your statement arrives or you lose a slice of your pay packet to settle your payday loan. It is no surprise that each year there is a spike in personal insolvencies in February and March when people have received their credit card statements, search for an answer and then choose a debt solution like a Debt Relief Order, Individual Voluntary Arrangement or bankruptcy.
Sands concluded: "The latest economic figures show that there is still a threat of a triple-dip recession. Millions of people are already struggling to balance their monthly budgets, with one in 10 people underemployed. Therefore, we recommend that people maintain their cautious approach to spending and always set a budget so they enjoy their holidays but do not overspend or add to their current debts causing them to spiral further."
Resources: RSM Tenon website
Bath-based Future plc, the publisher of specialist online and print magazines, said trading in its…
The university of Bristol was one of six organisations to receive a contract from the…
Oxford BioDynamics Plc is teaming up with researchers at King's College London in a bid…
More than a quarter of a million extra construction workers are needed in the UK…
Kent-based housebuilder Vistry revealed it was on track to deliver more than 10% growth in…
A Dorset-based company, which has developed ground-breaking technology to recycle plastic waste and turn it…