JANUARY sees a leap in calls to debt advice agencies, as the knock on effects of Christmas spending take hold.

And for some families, the Christmas spend is the tip of the iceberg, adding to a mounting sea of financial and other problems that demand specialist help, often over a long period.

Bradford-based charity Christians Against Poverty (CAP) sees the number of calls increase in the first month of the year and hit a peak on the second Monday in February.

“People tend not to call in December,” says spokesperson Marianne Clough, “They have a decent Christmas, then the children go back to school and bills come in and they think they need to do something about it.”

Debt problems dealt with by CAP are generally part of a raft of other difficulties.

“Most of the people we help have more significant problems than overspending at Christmas,” adds Marianne. “Most have significant, multiple problems that would derail most people.

“They have on-going low income - the average annual income of clients is just over £13,000. Being out of work, relationship breakdown, ill health, bereavement and many other factors can contribute.

“The general pattern of people we see tend to have poor housing and health and other issues too. Very often the people we help have had these problems and been dealing with them for years.

“People cut back on everything to the point where they are not eating properly and not heating their homes. They have cut back on essentials and then after all of that it comes to the crunch and by that stage a third of them are suicidal and a quarter have poor mental health.”

Poor mental health can contribute to debt, or be as a result of it. “We are aware that a lot of people who have debt problems have a tendency towards depression or anxiety and if they don’t talk to someone or get help things could spiral out of control.”

The free CAP sessions are designed for those who require an intensive, high level of help. The charity also runs money courses and job clubs.

“Some people do not know who they are in debt to, as their debts have been sold on. They are receiving countless phone calls and people banging at the door.”

If it is found that a person is unable to maintain their debts even after a payment plan is implemented then a solution is found. This could include insolvency, bankruptcy or a debt relief order. “We look at what options are available and the best way forward,” adds Marianne.

For national debt advice and management charity StepChange, January is the busiest month of the year. Last January almost 60,000 people contacted their Leeds-based team of advisors.

Jonathan Chesterman has been an advisor at the agency - which operates a free telephone helpline as well as offering advice online - for more than 20 years. “This time of year is difficult, with so much pressure to spend,” he says.

“People know that their finances are going to suffer but they want to press ahead and have a good Christmas. They know they are going to have to deal with everything in January.

“A lot of people know that things are not going to get any better. They need help but want a decent Christmas break before they face the music.”

He adds: “People with children, in particular, are going to suffer. They may not have an excessively expensive Christmas, but the basics - food and a couple of decent presents - could push people into debt.

“There is pressure from all around, from advertisers and shops.”

Often people have not budgeted for unforeseen emergencies such as boiler problems or car breakdown. “If the situation is already tight it could tip the balance.”

Due to increased money spent in December, overdrafts are often not cleared with January’s pay packet. “Some people find they are paying for Christmas over the next few months and then another Christmas comes around. It becomes a cycle.

“Plus some people are paid earlier in December so there is a bigger gap before January’s is paid.”

Jonathan urges people to seek help from free organisations like StepChange and CAP.

He adds: “The advice we would give to people is don’t wait until you are totally desperate. Call us earlier rather than later.”

The charity’s online service offers complete anonymity. “All we need are financial figures and details of what payments people are behind with.”

*capuk.org; Tel: 01274 760720; Stepchange.org; call free on 0800 1381111