The twinkling lights, the joyful carols, the mountains of presents – Christmas is a time for magic, but let's be honest, it can also leave a less-than-magical dent in our wallets. If you're feeling overwhelmed by post-holiday debt, join the club! But fear not, there are things you can do to get your finances back on track:

1. Get organised and take stock of your debt:

• Gather all your debt-related paperwork - credit card statements, loan agreements, or any other financial documents.
• List down all your debts, including the creditor's name, account number, outstanding balance, interest rate, and minimum monthly payment.
• Calculate your total debt amount.
  

TOP TIP - Citizens Advice has a great checklist you can use to help collect information on your debts.

2. Create a realistic budget - your very own Budget Planner:

• Track your income and expenses to understand where your money is going.
• Identify areas where you can cut back on spending, such as dining out, entertainment, or non-essential purchases.
• Allocate a portion of your income specifically for debt repayment.
  

TOP TIP - You can use the online Budget Planner by Money Helper (a financial help service backed by the UK government). It's simple to use and also gives personalised tips!

3. Prioritise your debts:

• Decide which debts to prioritise based on the interest rate and minimum payment requirements.
• Consider focusing on the debt with the highest interest rate first, as this will save you the most money in interest over time.
• Another approach is to tackle the debt with the lowest minimum payment first, so you can free up more funds to allocate to other debts.
  

TOP TIP - Money Helper has a great Bill Prioritiser tool you can use for free. It's easy to follow and will guide you towards which bills to tackle first and gives advice on what to do next on each debt.

4. Seek professional help, for free!:

If you're struggling to manage your debt on your own, don't hesitate to ask for help from a debt advice charity. It's free. Here are three you can call:

• Citizens Advice - 0800 240 4420
• StepChange Debt Charity - 0800 138 1111
• Debt Advice Foundation - 0800 622 61 51

They can provide personalised guidance, help you create a plan, and some, such as Citizens Advice, can negotiate with creditors on your behalf. They can also help determine if any of the following may be suitable for you:

• Consolidating your debt
• Breathing Space (Debt Respite Scheme)
• Debt Management Plans
• Administration Orders
• Individual Voluntary Arrangements
• Debt Relief Orders

You never need to pay for debt advice.

Dealing with post-Christmas debt is a marathon, not a sprint. Be patient, celebrate milestones, and don't give up. With careful planning, discipline, and maybe a little help, you'll conquer your debt and achieve financial freedom.

Remember, you're not alone in this. Your financial freedom is just a few steps away!