It might seem like an age since you pulled the crackers, devoured the turkey and downed the bubbly, but a quick look at this month's bank balance will soon reveal otherwise. The excesses of Christmas always seem like a great idea at the time but, in the cold light of a January day, it's hard to recall how it ever made sense to spend that much money.
Whatever the reason, the damage is unfortunately done and, unless you feel like grabbing those expensive presents back from your friends and family, there's no chance of reimbursement at this stage. It's time to move on and hopefully introduce a bit of prudence to your financial life in the future. Think of it as a new year's resolution for your wallet.
The good news is that there's no need for you to suffer the trauma of your financial "diet" alone: support is at hand and it won't cost you a penny. The Money Advice and Budgeting Service (MABS) is funded by the Department of Social and Family Affairs, and is designed to offer basic financial advice to ordinary people who find it difficult to budget effectively. Almost 60 MABS offices are spread throughout the Republic, all promising to offer advice in a "non-judgmental, holistic way".
If you have internet access, the easiest place to start your new financial health regime is on the MABS website (www.mabs.ie), where a "personal budget spreadsheet" can be completed. The main advantage of this excellent resource is its simplicity; all you need to do is have an idea of how much money comes in to your kitty every week and of where it goes afterwards. You fill in a series of gaps such as "groceries" and "lotto" and the spreadsheet will do the rest, automatically calculating how much money is left every time you make a purchase or pay a bill. This way, you keep track of how your money disappears and are instantly in a better budgeting position because you can anticipate future outgoings with greater accuracy.
MABS will then provide tailored support based on an individual's personal needs. This could, for example, involve maximising a person's income through seeking additional welfare statements or simply acting as a "go-between" negotiator between creditor and debtor. Typically, the service deals with issues such as utility arrears, maintenance payments or credit card problems. Some clients require ongoing help whereas, for others, one visit can be sufficient.
MABS offers two schemes to those clients who wish to engage with the service on a long-term basis. The most popular is probably the Special Account Scheme, which is operated in conjunction with the credit union movement. This scheme entails payment of an agreed amount to a client's local credit union every week. This money is then administered by MABS to pay current bills and to make an agreed payment towards arrears, and no administrative charge applies. Participants in the scheme are also encouraged to save a small amount every week in order to establish a credit rating.
The other available plan - the Household Budget Scheme - is operated by An Post in association with the Department of Social, Community & Family Affairs. This scheme applies to people in receipt of social welfare payments, allowing them to arrange deductions at source for routine bills such as electricity or local authority rents. All advice provided by MABS is designed to ensure that clients avoid getting themselves into a similar debt-ridden situation again. Underlining this "prevention better than cure" philosophy is a programme of community education resources where clients can pick up further financial skills and thus empower themselves to independently oversee their financial affairs in the future.
All in all, there's no excuse for not making this year's sensible resolution last forever.
Search for your closest MABS office on www.oasis.gov.ie, the Government information website, or visit www.mabs.ie for further information.
