How to clear your debt by Jan 31 in 9 easy steps
The average Brit will have a Christmas hangover of £740 of debt and £323 on credit
CHRISTMAS can leave families in trouble with big debts to pay off - but there are ways to clear what you owe within the month if you follow nine easy steps.
The average Brit will have a Christmas hangover of £740 of debt and £323 on credit, according to research by MoneySuperMarket.
If you've been left in financial dire straits because you've overspent this Christmas, don't panic.
Finance experts have shared their top tips with The Sun to reveal how you can keep lenders at bay and pay off as much as you can afford by January 31.
These are the top 10 tips to follow if you find yourself in debt this January.
Dennis Hussey, money adviser at said: "During the festive season people can feel pressured to spend more money which can cause worry and affect people’s finances at the start of a new year.
How to cut the cost of your debt
Being in a large amount of debt can be really worrying. Here are some tips from Citizens Advice on how you can take action.
Check your bank balance on a regular basis - knowing your spending patterns is the first step to managing your money
Work out your budget - by writing down your income and taking away your essential bills such as food and transport.
If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum - If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner - If you have more than one credit card and can’t pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts - If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them.
Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don't pay.
Get advice - If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further.
Groups like Citizens Advice and National Debtline can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans
Make a budget and prioritise your debts
Debt experts say the most important step in clearing what you owe is to make a budget so you can get on top of your finances.
Prepare a monthly plan of what you will spend on everything, from household bills to the weekly food shop.
The charity network urges people to pay off their "priority debts" first, which includes your rent or mortgage, energy bills, and council tax.
These need to be paid off first as they could leave you homeless or in court, Citizens Advice warns.
She said: "This only needs to be a temporary thing until your debt is paid off, and it will speed up the time of doing this massively."
She also suggests setting up a "side hustle" to make some money in addition to your job, such as mystery shopping, selling homemade crafts, blogging, dog walking and cat sitting.
StepChange has on the side.
There are also auto-switching services, which do the hard work for you and switch you onto a better deal by comparing thousands of tariffs.
By switching energy suppliers, you could save £300 a year.
You can also tighten your belt and make some savings.
Mr Shaw, of StepChange, said: "It can be as simple as switching to a cheaper supermarket, or taking shorter journeys on foot rather than by car or bus."
Check if you're entitled to extra cash
Millions of pounds worth of benefits and tax credits are unclaimed every year, so make sure you're not missing out on cash you're entitled to.
It's easy to check if you can get some extra help.
Poverty charity Turn2Us has that will do all the work for you.
The Government also recommends calculators from and .
Speak to one of these organisations - don't be tempted to use a claims managment firm that will claim it can write-off lots of your debts in return for a large up-front fee.
Make a free debt management plan
Managing your debts can be overwhelming, but there are ways to make it easier.
If you have any money left after paying priority debts, Citizen's Advice said you could consider getting a free debt-management plan for your non-urgent payments.
Avoid claims management services who will charge you a large upfront fee.
Get a zero balance transfer card
If you have debts with a high interest rate, there are ways to cut that interest down by getting a 0 per cent balance transfer card.
She said: "You need to be 100 per cent sure that you will be able to pay it off before the interest goes up, but this is a great way of saving money, as you won’t be paying the interest.
"I personally did this when I paid off my debt, and having the deadline of the 0 per cent interest ending really helped to motivate me as well."
will let you know what deals you will likely qualify for.
The MBNA Low Rate card has the longest 0 per cent deal on the market currently at 48 months (four years) but only people with decent credit scores are likely to get accepted for that long a deal.
When you apply, you could be accepted by the provider but be offered a smaller 0 per cent period.
Remember to always try and clear your balance before the period ends - lenders rely on you failing to do this so they can start charging you interest.
Ask for (free) advice
The most important thing is to remember that you are not alone in having debt left over from Christmas.
There is plenty of free, independent advice available from charities including National Debtline, Citizens Advice, Turn2Us, and StepChange.
StepChange says that 50 per cent of its clients wait a year before seeking help.
But as Mr Hussey, of National Debtline, explains: "The earlier you seek free advice, the quicker and easier your problem will be to solve."
In a victory for The Sun, there has been a crackdown on doorstep loan companies, store card and catalogue debt.
MoneySavingExpert has just launched a new tool to help you reclaim hundreds of pounds for mis-sold payday loans.
In August, we revealed how payday loan customers could be due millions back in compensation.
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