Three resolutions that can save you from festive debt this time next year

Almost eight million people are predicted to finish January behind with their finances, thanks to the cost of celebrating Christmas and the new year.

That's according to new figures from National Debtline, run by the Money Advice Trust charity.

“After the celebrations of the Christmas period, January is a challenging time for many households with the impact of festive spending taking its toll on household budgets," said Money Advice Trust chief executive Joanna Elson.

But it doesn't have to be that way.

“With millions expecting to fall behind with their finances in January, we want people to be financially prepared for the year ahead," she added.

The time to plan is now

The charity found more than half of Britons (55%) had not been saving for Christmas before December started, and just one in seven (14%) started before last summer.

That meant people were reacting too late, with a 45% increase from last year in the number of people saying they are set to fall behind in January as a result of Christmas.

Overall, more than one person in three (37%) said they were putting Christmas presents on credit.

But taking action now, while the impact of holiday spending is most immediate, could mean you start next year in far better shape.

“At the start of this New Year, when resolutions are being made, I would encourage everyone to look at their personal finances and make a plan if they can for 2018 – set a household budget, look at joining a credit union in preparation for next Christmas and seek free advice at www.nationaldebtline.org if you are struggling to cope," Elson said.

“Taking these first steps to make a plan for your finances can make a huge difference for the rest of 2018.”

And if - like many families - rising costs and stagnant incomes mean saving isn't always possible, then you need to make sure you're not spending any more than you need on credit.

These are National Debtline and ABCUL's top 3 new year resolutions to stay our of debt:

1. Make a plan for 2018

Setting a budget is the single biggest step you can take to get on top of your finances.

Sit down and work out how much money you have coming in every month, and what you need to spend. Don’t forget to account for annual expenditure, like car insurance or road tax, by dividing it through by 12.

2. Join a credit union

Make a plan to start saving for next Christmas. You might not be able to start actually saving in January, but you can get ready by joining your local credit union, which is a great way to save for occasional costs.

Many have dedicated accounts for Christmas, and by becoming a member, you can access affordable credit if you need to later.

“Credit unions across the country help their members to save towards the costs of Christmas with dedicated Christmas savings accounts which lock funds away and make them available as the festivities approach," said Mark Lyonette, chief executive the Association of British Credit Unions Limited.

You can find your local credit union at www.findyourcreditunion.co.uk

3. Deal with any debts you have now

Open all of your statements and get a handle on how much you owe. Write down a list of all of your debts, together with the outstanding balances and repayment dates for each.

Remember that you are not alone in this. Free, independent advice is available from charity-run services such as National Debtline .

The earlier you seek free advice, the quicker and easier your problem will be to solve.