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Brace yourself for Blue Monday – so called because it’s the day of the year when financial woes are likely to get the better of us
Brace yourself for Blue Monday – so called because it’s the day of the year when financial woes are likely to get the better of us.
The term is given to the third Monday in January, which falls tomorrow.
The theory is that on this day the Christmas holidays are really over, the days are still short and cold and our finances are more strained than ever in the wake of the December festivities.
Blue Monday: the theory is that on this day the Christmas holidays are really over, the days are still short and cold and our finances are under more pressure than ever
This year, households in particular are struggling with money worries, with 12 million 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 1.4 million homeowners who will need to re-mortgage in 2023. More than 800,000 could see their payments double due to higher interest rates.
The Financial Conduct Authority predicts that 750,000 households could default on their mortgage in the coming years because they find payments unaffordable.
Richard Lane, director of the charity StepChange, says: ‘Financial turmoil is common at this time of year. However, it is essential that you do not suffer in silence, but seek support.’
He adds that anyone struggling with mortgage payments should contact their lender immediately.
“Mortgage lenders have a responsibility to treat borrowers fairly and help with practical support – such as rescheduling payments to make them more affordable where possible,” he says.
Those who are anxious or anxious to call their mortgage lender can contact StepChange for free impartial advice on how best to handle the situation.
The National Schuldlijn, Burgeradvies and Stichting Schuldadvies of the Geldadviesfonds Foundation also offer free support.