Debt Free Christmas Idea

SRowlands · 13 October 2016 at 1:19PM

I have had an idea for a campaign that I think would work really well and help people falling into debt over Christmas...

We already have some regular bills that are spread over 10 months rather than 12, with no payments in Feb / Mar, but how about if the MSE team could approach all the major utility providers and councils to suggest that they all offer this option, but the payment free months would be December and January (or November and December).
Although this would mean that the average monthly bills would increase slightly, it would result in households having an extra £300 - £500 a month over the Christmas period - enough to pay for Christmas without spending on credit.

Any feedback on the idea would be appreciated - let me know what you think... good idea or rubbish ?!?

tori.k · 13 October 2016 at 1:41PM

Not trying to put a downer on the idea, but it's something I would say utilities provider's would say can already be done with the option of a prepayment meter for energy, water & TV licences are also on a variable payment option to suit. Debt at Christmas is purely consumer debt, if you opt not to spend what you don't have there is no debt.

EssexHebridean · 13 October 2016 at 1:42PM

I'm not voting in the poll because I don;t feel either answer really covers it. In theory it sounds like a good idea - but the problem is that it doesn't address the issue which is that people who put christmas on a card do it because they fail to budget. As Martin said years ago - it really shouldn't come as a surprise to anyone - it's on the same day every single year without fail, and we have a full 12 months to plan for one after the next!

The sad thing is that the people who get themselves into a mess at Christmas would still have to a) think ahead enough to request to be converted onto this scheme, and b ) Not get themselves in a deeper hole as a result of being £30 - 50 a month worse off the rest of the year... How many of them do you HONESTLY think currently put the Council Tax/Water rates money aside at the moment, as opposed to those who simply never even notice it and just fritter it away?

I'm firmly of the opinion that financial education and increasing understanding that credit can be a choice, it does not have to be a way of life, is the way forward, but nannying people and in effect "doing it for them" doesn't help - as if you do that their understanding of their situation never increases.

DomRavioli · 13 October 2016 at 1:46PM

Rubbish - most people haven't got the money to increase to 10 months, especially as winter is high on utilities.

And not sure where you get your figures from either - I know it wouldn't give me an extra £300; maybe £100 but nowhere near that and I'm in a three bed semi with an extension and having 14 people stay over xmas. Also bills wouldn't increase slightly, add £300 onto 3 utilities, thats an extra £100 each per year, or a tenner a month per utility (at ten months). Most people haven't got £30 lying about every month, and those that this may help deffo do not have £30 every month, ten months of the year.

If people choose to get in debt at christmas, that is up to them, but this is completely ill thought out. When you have an income of less than £100 a week (as a lot of people do), taking 10% of it for this purpose is just crazy.

EssexHebridean · 13 October 2016 at 1:51PM

DomRavioli wrote: »

Rubbish - most people haven't got the money to increase to 10 months, especially as winter is high on utilities.

And not sure where you get your figures from either - I know it wouldn't give me an extra £300; maybe £100 but nowhere near that and I'm in a three bed semi with an extension and having 14 people stay over xmas. Also bills wouldn't increase slightly, add £300 onto 3 utilities, thats an extra £100 each per year, or a tenner a month per utility (at ten months). Most people haven't got £30 lying about every month, and those that this may help deffo do not have £30 every month, ten months of the year.

If people choose to get in debt at christmas, that is up to them, but this is completely ill thought out. When you have an income of less than £100 a week (as a lot of people do), taking 10% of it for this purpose is just crazy.

Decent points but appallingly put across. Courtesy to other posters costs nothing and should ESPECIALLY be applied when someone is new to the forum.

MoneyMission2015 · 13 October 2016 at 1:57PM

I don't think it's a good idea. It wouldn't give anybody 'extra' money during the Christmas period, because they would be paying for it during the rest of the year. As an example, my gas & electric combined is £65 per month over 12 months. If I were to pay that over 10 months instead it would cost me £78 per month. So for 10 months of the year I would be 'down' £13 per month but then in November and December I would have £156 to spend. I could just save that £13 per month myself and be able to buy bargains throughout the year when I spot them, rather than having to wait until I have the free months. I noticed last year that most of the sales and offers were in September and October and then come November/December, prices shot right back up for almost everything. I bought my daughter a Lego Friends Hotel last year on offer for £75 in September but by the end of October it has shot right up to £95. So if your 'free' months were November and December, you'd be paying the highest prices for stuff that you could have got for a lower price 2 months before if you just saved the money in your own account.

As another poster said, Christmas isn't a surprise to any of us, it comes at the same time every year so if you want to be able to buy family & friends a gift then you should be planning for it all year. I'm definitely not preaching, because I am guilty of using credit cards in the past which is the reason most of us are on this board, but I have learnt a lot in the last few years and I now budget my money to the penny every month so that I can not only pay debts, but can also save for Christmas, birthdays, emergency fund etc. I've actually got 10 savings 'pots' on the go now and I just stay strict with myself to save every month without fail. A few times I've felt like going on a bit of a splurge and spending it all, but then I think about what I will do if my car breaks down or how I'm going to pay for my daughters Christmas presents and it stops me.

I know some people are not at that point yet but a scheme like this wouldn't help. I put my council tax money towards debts now in February and March, but looking back on previous years before I had my lightbulb moment, I honestly couldn't tell you where that money went for those 2 months. Probably blown on new clothes and toys for my kids and possibly a few takeaways.

SRowlands · 13 October 2016 at 2:24PM

Ah well... as mentioned it was just an idea, and apologies if it wasn't put across well but this was my first post...

For information with regards to the calculations, I based these on my own circumstances as follows...

Council Tax - £180 / month
Gas/Electric - £65 / month (slightly less now thanks to MSE Big Switch !!!)
Water/Waste - £45 / month
Landline/Broadband - £35 / month
Sky - £50 / month

So total for me is £375 per month. With this idea my monthly outgoings would increase to £450 per month, but then I would not have these outgoings over Christmas giving me an extra £900 over the two months...

Of course, I would be in the fortunate position of being able to pay the extra each month, but can fully see that others might not be in a position to afford it, and it would be those that I was thinking the scheme would benefit most...

Okay... bad idea, and feedback appreciated :-)

EssexHebridean · 13 October 2016 at 2:38PM

It's like I said though - the theory wasn't a bad one!

Welcome to the forums - have a browse about and make yourself at home!

Ilona · 13 October 2016 at 2:51PM

Welcome SRowlands. At least you have tried to come up with a solution to that age old problem of how to afford Christmas. As already stated people are living from month to month and don't have much spare cash left over.

There is another way to avoid spending more at the end of the year, and that is to drastically reduce the presents and entertainment budget, it is not compulsory to join in. And as already suggested, we know Christmas comes at exactly the same time every year, so start saving in January with a monthly budget, even if it is only a few £'s, and put it somewhere where it can't be spent until December 1st.
Ilona

DomRavioli · 13 October 2016 at 4:18PM

EssexHebridean wrote: »

Decent points but appallingly put across. Courtesy to other posters costs nothing and should ESPECIALLY be applied when someone is new to the forum.

You're entitled to your opinion, but not to drag mine down. On the block list you go.

Pixie5740 · 13 October 2016 at 10:19PM

If your bills are £375 a month but you could afford to pay £450 a month then you could set aside £75 a month for Christmas. That's what I do and end up with a nice lump sum in December to spend and it allows me to pick up presents throughout the year in sales. January is a good time to pick up wrapping paper, Christmas card and crackers but you do have to remember where you put them.

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