January can be a very difficult month. The extra expenses of Christmas are being felt and the winter weather means heating bills can be high.

If you realise that you will have difficulty paying for regular outgoings the most important thing is not to block it out and hope things will resolve themselves. Sit down and look at how much money is coming in each month and work out your essential expenditure on priority payments such as rent or mortgage, energy bills, council tax and food. It is important that the rent or mortgage is paid otherwise your home could be in danger.

Once you have drawn up a budget you can see how much money is available to pay other bills. Contact everyone you owe money to and ask if you can pay a reduced amount while sorting out your finances but do not agree to more than you can realistically pay. Try not to be tempted to borrow more money such as a Pay Day Loan as this can add to the problem.

If you need any help with the way forward Citizens Advice can help. We can look at your whole situation, help draw up a budget, negotiate with creditors and look at the best options for getting you back on track. Once you have your finances under control again you could think about whether you could afford to regularly save a little for emergencies. The Credit Union is one option and when registered you can also borrow from them at a low rate of interest at times of need.

For free, confidential advice on this or any other problem call 0344 2451291 or contact Dorchester Citizens Advice at 1 Acland Rd Dorchester.

Alternatively visit citizensadvice.org.uk, or westdorsetca.org.uk

ANN PURVIS

CITIZENS ADVICE