January Blues: are debt problems getting you down?

Getting the January Blues is nothing unusual. According to Moodscope.com, yesterday (January 3rd) was officially 'the most depressing day of the year'. But the website doesn't set out to make people depressed! It's an online tool designed to help people improve their mood.

Asking users to measure their mood and tracking the findings on a chart, the tool helps them to figure out what makes them feel good or bad. It also emails their scores to 'buddies' who can provide support (a bit like dieters will help other weight watchers stay on track).

The Express reports on the story, quoting Jon Cousins, who founded the website: "On the face of it, discovering that today is one of the year's gloomiest could be seen as yet more bad news, but we like to think that forewarned is forearmed.

"See it like a weather forecast. If you knew it was going to be cold and wet, you'd take a coat and umbrella when you went out."

Forewarned is forearmed

In much the same way, forewarned really is forearmed when it comes to dealing with your finances. It might be tempting to try and ignore any financial worries you have, but you could really benefit from facing up to your finances and figuring out how and where you could manage them better this year.

For people who are in debt, repaying that money can be their biggest financial challenge, so it really pays to sit down with a budget and decide on the best way of tackling their debts. Having some kind of 'roadmap' for the year in front of you can help you combat the January Blues - the financial part of them, at least! A look at some of the most important benefits…

You'll know you're facing your debt problems

First of all, you'll know you're doing something about your debts. Simply knowing you're doing what you can to get out of debt can make things look a lot more positive.

Besides, bills can seem even more intimidating when they're left unopened. Getting the real figures into a budget plan can cut some imagined problems down to size - you might find your finances are a lot healthier than you feared!

Or you might find out things are worse than expected. If you do, you might need to look into debt solutions - such as debt management plans - that could help you get back on track.

You'll know what you need to pay

If you're not sure how much your debts are costing you every month, you won't know if you can genuinely afford them. If you're basically 'robbing Peter to pay Paul' each month, you could be storing up much more serious problems for the future.

Figure out what your monthly payments really are and you should find it a lot easier to budget for them every month, so you're less likely to miss payments or make them late.

And if you can't afford your payments, the sooner you realise this, the better. If you can't repay what you should (and when you should) you might need to reach a new agreement of some kind with your unsecured lenders, such as a debt management plan. They may let you make lower payments and may agree to freeze interest on your debt. Just be aware that making smaller payments each month can affect your credit rating and cost you more in the long run, due to interest.

You'll know when you should be debt-free

Having something to look forward to can make all kinds of situations easier to deal with. If you're struggling with the January Blues, how do you think you'd feel if you knew when your debts will be (or at least should be) paid off in full?

If you know how much you're paying each month and how much you owe in total, calculating when your debts are due to be paid off shouldn't be too difficult. You might even be able to simplify the process by taking out a debt consolidation loan.

Where do you start?

If you're not sure how to get started, talking to an expert could be a good first step. They can advise you on drawing up a budget and figuring out your finances, and can tell you about the advantages and disadvantages of debt management plans, debt consolidation loans and other debt solutions that can help people get back in control of their debts - and give them something to look forward to other than a cold New Year!

Matthew Plant