The best way to manage holiday debt is not to go on holiday in the first place. It’s not a popular choice, but tough times call for tough decisions, and around 1 in 4 British adults has decided not to take a holiday this year, according to a new study on holiday spending by CreditExpert.
Giving up holidays may be an unpopular option, but for anyone struggling to manage their debts, it’s often the most obvious expense to cut. After all, unlike rent / mortgage, gas bills, petrol, food, etc. holidays aren’t actually essential.
So while it’s worrying to see 24% of British adults foregoing their holiday plans this year, it’s far more worrying to hear that 2.8 million ‘will jet into the red just to get a break’. “A good holiday can help people relax and recharge their batteries,” said a spokesperson for debt management company Gregory Pennington, “but a household budget can only stretch so far. When it comes to a choice between going on holiday and paying essential bills, there’s no question about which is more important. For anyone in financial difficulty, their number-one priority should be managing their debts and paying them off as fast as possible. The sooner they do this, the sooner they’ll be able to go on a holiday that isn’t ruined by worrying about money all the way through.”
For many, of course, simply avoiding a holiday isn’t enough. Even without the added expense of a holiday, many people find their monthly budget can’t cover their basic expenses – the rising cost of living is only part of the problem, as many people are also struggling to manage record levels of personal debt. Once their monthly debt repayments exceed their disposable income, their situation can rapidly go from bad to worse, unless they reduce their monthly debt repayments through a professional debt solution such as a debt consolidation loan or debt management plan.
Debt reduction through debt management
A debt management plan can reduce someone’s monthly debt repayment without any need for further credit. It works like this: the individual talks to a debt management organisation, who will then talk to their creditors, negotiating lower monthly payments and asking them to freeze interest and waive charges. By reducing monthly repayments like this, debt management can help someone pay off their actual debts (rather than struggling to keep up with interest charges) and help them avoid running up new debts, by freeing up the money they need for their ongoing living expenses.
