Brace yourself for Blue Monday – the day of the year when financial woes are most likely to get on top of us
Brace yourself for Blue Monday – so called because it’s the day of the year when financial woes are most likely to get on top of us.
The term is given to the third Monday in January, which falls tomorrow.
The theory is that on this day, the Christmas break is well and truly over, the days are still short and cold, and our finances are more stretched than ever in the wake of December’s festivities.
Blue Monday: The theory is that on this day, the Christmas break is well and truly over, the days are still short and cold, and our finances are more stretched than ever
This year especially households are struggling with money worries, with 12million people now borrowing for food or essential bills, according to a survey by the Money and Pensions Service last week.
However, financial woes are likely to continue to escalate for 1.4million homeowners who have to remortgage in 2023. More than 800,000 could see their payments double as a result of higher interest rates.
The Financial Conduct Authority predicts 750,000 households could default on their mortgage over the next couple of years because they are finding payments unaffordable.
Richard Lane, director at the debt charity StepChange, says: ‘Financial unease is common at this time of year. However, it is vital you do not suffer in silence but seek support.’
He adds that anyone who is struggling with mortgage payments should contact their lender straight away.
‘Mortgage lenders have a responsibility to treat borrowers fairly and help with practical support – such as rescheduling payments to make them more affordable whenever possible,’ he says.
Those who feel anxious or fearful about calling their mortgage provider can contact StepChange for free impartial advice on how to best tackle the situation.
The Money Advice Trust’s National Debtline, Citizens Advice and Debt Advice Foundation also offer free support.