If you’re relying on a birthday card with money in it to solve your debt problems, you may have some wait ahead. Card specialist Birthdays, has been placed into administration by parent company Clinton Cards, threatening the jobs of 2,000 of its staff.
The firm, based in Bury – Lancashire, announced that all 223 stores will continue trading whilst administrators explore all options, but the poor trading conditions have meant that the £7m annual losses cannot be sustained.
For the 2,000 staff who face losing their job, the news will frighten many to make sure their finances are in order. A reduction or loss of earnings can have disastrous effects on household finances, plunging many further into the red as they rack up loans, overdrafts and credit card debts.
Debt help organisations are braced for the upturn in numbers of individuals seeking their impartial debt advice, and have warned people who think they may be in trouble now or in the future to deal with their finances sooner rather than later.
A spokesperson from leading debt management company Chiltern said: “If you use any form of credit regularly each month to pay for essential items, like food, fuel or household bills, it’s not a good sign. Ideally these should come out of the household budget.
“By using credit cards and overdrafts for these things you go a little further in debt each month and if left untouched you could be developing serious debt problems which could cost you dearly. Eventually the credit will run dry and you will be left with a mountain of debt.”
Debt management companies, like Chiltern, can help people who are in this situation by offering budgeting and debt advice, so that finances are organised and made simpler. They can also help you find out where your problems are stemming from and suggest ways to get out of debt.
For people who could benefit from a specialist solution, products like debt management plans (DMPS) or Individual Voluntary Arrangements (IVAs) may also be recommended. These help to prioritise all of your finances and regain control, whilst still repaying all of your unsecured debts.
All outstanding unsecured balances can be gathered into one single monthly payment, which is based on how much you can realistically afford. Repayments are then rescheduled over a longer period of time to make them more affordable – thus making finances simpler and easier to manage.
For people who are made redundant or where a company goes bust and jobs are lost, debt management plans (DMPs) may offer a ray of light. Debt management plans are a flexible solution and repayments can be altered to suit your changing financial circumstances, so can be a useful way of ensuring all credit commitments can be met whilst you try to secure another job.
And when you do find another job you can simply increase your repayments and satisfy your contractual obligations. Just don’t expect too many “New Job” cards, as there may not be a shop to buy them from!
If you would like to find out more about debt solutions such as debt management plans or IVAs, or for immediate debt advice, please call the number at the top of this page.