Plastic credit cards have been around in the UK since June 29th 1966, when the first one was issued by Barclaycard. As most of us know, these plastic cards can be very useful, particularly around holidays, anniversaries, birthdays and Christmas. The Consumer Credit Act of 1974 brought some structure into controlling credit and lending. Some may remember credit scoring if you wanted a loan from a bank: fill in the application form and await the computer’s verdict. This system was so fallible that based on whether or not you had a telephone, the decision could change from a yes to a no – or vice versa!
Of late, the concept of ‘Buy Now, Pay Later’ seems to have come back into fashion. In the old days this was known as borrowing on the ‘Never, Never’, a form of hire purchase. Some credit agreements do not charge interest, but others just defer it, meaning that if the outstanding balance is not paid back within an agreed time, interest will become payable.
As the Christmas spending bills arrive in January and/or February, this can put pressure on our personal finances. The national press reported recently that the Christmas 2024 debt has increased on previous years and is not far off £3.5 billion.
Many people can sort out their own finances, but if you’re feeling overwhelmed and in need of a bit of help or guidance, start by doing an income and outgoings statement. This literally means making a list of all money that is coming in and going out. Remember to include any unpaid bills to help prioritise the most important ones. Check if you make any donations that could be suspended or cancelled. ‘Socialising’ can be a costly outgoing that could be curbed.
Most credit card companies, banks and building societies want to help if you are in financial trouble and have internal systems with real live people who will talk with you and try to plan a way forward. In some cases the National Debt Helpline 0808 808 4000 is worth contacting. This is part of the Citizen’s Advice [Bureau]. Mr. Money Steps is a 24/7 automated system on the computer designed to help people with limited time to “discuss” their finances. This is also well worth a try. There are also various other charitable organisations offering advice on specific issues. These include Crisis, Salvation Army, Shelter and Centre Point (for young people).
If you have, or think you may have, problems, please get advice and help as soon as possible. Delaying it will only make things worse.
Norman Anderson, Chairman of Todwick Neighbourhood Watch todwick.nhw621@btinternet.com
