Here are some of the comments and reactions to the release of the new OFT Debt Management Guidance.

Recent reports have suggested that use of discounts and deal websites such as Groupon are on the decline. Vote in our poll and tell us if you’ve decreased your use of these sites.

For some people, shopping on discount and deal websites has become a part of their everyday life. Groupon, one of the most popular discount websites boasts over 414,000 Facebook fans on their US page and over 82,000 Facebook fans on their UK page. However a report released this week by a research group in Australia reported a 34% fall in “group-buying” transactions on websites such as Groupon.

Despite its success, Groupon have come under fire since they were founded in 2008 and are currently under investigation from the OFT regarding exaggerating discounts, failing to honour deals and “unfair terms”. Another deals website, Goodypass.com, which was backed by Daybreak presenter Kate Garraway, has been taking steps to stay afloat by making redundances and applying for a Company Voluntary Arrangement, which works in a similar way to an IVA.

Have you cut down on using deal and discount websites this year? Vote in our poll now and have your say.

Personally, I have been unsubscribed from Groupon and other similar sites for a few months now. I found the deals on offer didn’t appeal to me and I felt like I could do without the temptation to buy things I didn’t need. Stories of poor customer service have also made me think twice before purchasing from a deals/discount website.

Here are some other experiences of these websites:

Last week the Insolvency Service released figures showing that debt relief orders are more prevalent among 25-34 year olds than any other age group.

These figures were released to launch a “Dealing with your debt” campaign by the Insolvency Service which “aims to help the young deal with their debt in the most appropriate and effective way”.
The campaign gained a lot of publicity, being featured on BBC News programmes across the country as well as regional radio stations. BBC used a case study to illustrate the issue, which you can view below:

I’m all for raising awareness about personal debt and the solutions available, but sadly from some of the comments I saw on twitter about this story, people were focusing on the notion that a debt relief order is an “easy” way to write off irresponsible spending, rather than looking at the real reasons why more and more young people are struggling with debt.

Here are some of the comments left on twitter:

I’m no expert on debt relief orders, however I have studied them as part of the training towards my CertDR qualification and one thing which stands out to me is the strict criteria required in order to apply for a one, including:

• Your total assets must not be more than £300.
• Your disposable income after deducting all normal living expenses, must not be more than £50 per month.

From my experiences here at ClearDebt, the reason most people find themselves in debt is because of a change in circumstances. They took on credit when they were in a secure position to pay it back, but then a job loss, an illness, a divorce, a pregnancy or some other life-changing event affected their ability to make the repayments.
There are of course some people who are in debt due to poor money management and a “buy now, pay later” attitude, but these are a minority and I don’t believe that any debt solution should be considered an “easy” option.

Stuck for activities that won’t break the bank this Christmas? I’ve put together some tips to help you find the best free and affordable events to keep you entertained this December.

Christmas is expensive enough with all the gift buying (read our Christmas Shopping tips here), but when you factor in activities and entertainment over the festive season; the costs just keep getting higher and higher. However, if you plan ahead and keep an eye out for special events, you could save yourself a lot of time and money! Here are my tips for seeking out the activities to suit your budget.

Start with your local council website

Your local council website should serve as a resource of useful information – including Christmas events. You will find links to local libraries and art galleries and be able to see what events they’re hosting over the Christmas period. If you’re not sure of the web address for your local council, you can do a search via this link on the direct.gov.uk website.

Shopping Centres aren’t all about shopping

The thought of visiting a shopping centre in the run up to Christmas might fill you with dread, but if you can find yourself a parking space and battle through all the shoppers you might find that there’s some free fun to be had! For example, local to me, Manchester’s Trafford Centre has some great free craft workshops on.
The best way to find out about any upcoming events is to sign up to the shopping centre’s email list or connect with them using social media by liking them on Facebook or following them on Twitter. This way you’ll be the first to know what’s happening and when.

Sign up for meal-deals direct to your inbox

As well as keeping your children entertained, you might also need to think about entertaining friends or family who have come to visit during the festive period. A great way to save on eating out is to sign up to discount websites such as Livingsocial and Groupon. These websites are free to join up to and will send you regular emails with restaurants offers so that your meals out don’t cost the earth.

You do need to be cautious though. Before buying a meal deal, check when the offer is valid from and which days of the week you can use it as most have restrictions on dates and times. It’s also worth checking the prices for any extra drinks or side orders as these can often make you meal suddenly seem not so reasonable.
Jacqueline Cohen, Marketing Manager at ClearDebt is a big fan of these sites, she explains,

After having a baby three years ago, we really cut back in my household and the need for nappies, childcare and more food in the house, far outweighed the opportunity to go out for dinner. With sites like Groupon, Living Social, Frugaloo and KGB, we now go out for dinner quite often – all for £25 or less – for the two of us! These sites are also great for Christmas and Birthday gifts so when the moneybox is running a little low in January, these sites will certainly lend a helping hand.

Plan a perfect night in

Celebrating the festive season doesn’t have to mean going out all the time. Personally when the winter weather kicks in I much prefer an evening in all snug and warm. This time of year there are always plenty of films to watch on TV, so pick one that you like and start planning a “movie night” around it. If movies on your TV at home just don’t compare to the cinema, there’s plenty of other fun you can have at home. Why not dig out your old board games and get some healthy competition going? Or if you’re more into video games set up a tournament between your friends.

What are your plans for the Christmas break?

We’d love to know how you’ll be spending the Christmas break, so tell us your plans and feel free to share any affordable events and activities you’ve come across.

It’s difficult not to get sucked into the commercial element of Christmas; the shops transform into winter wonderlands and seemingly ordinary items that you wouldn’t consider buying suddenly have an appeal thanks to the Christmas packaging. Here are some of our tips to help you enjoy the holiday season without hurting the bank balance.

Saving up for Christmas

At the start of January I blogged about a campaign the Office of Fair Trading launched to encourage people to save up for Christmas all throughout the year. I’m not sure how successful the campaign was, but I think we can all agree that saving is a great idea and if you didn’t manage to save this year then you might want to consider it for Christmas/New Year 2012/2013.

Okay, so it’s October now and if you haven’t managed to save up a sizeable amount of Christmas funds, then you can still be smart about your Christmas shopping with a little bit of planning and research.

Research your Christmas gift list online first

Online shopping can be a great way to make savings.  Lots of online stores can afford to sell items cheaper than on the high street because their overheads are lower. Having said that, there are still many of you who prefer to buy in person but that doesn’t mean online shopping sites can’t help you! Most high street stores have websites so you can compare the prices from one store to another and remember – price comparison websites aren’t just about insurance, some of them can also compare electrical items and other gifts.

Quick tip: type the name of the product you want to buy into Google and view “shopping results”.

Example: I typed in “Moshi Monsters Toy” and I was shown the following:

Make a shopping list

This might sound like an obvious tip but after you’ve done your research online you should then make a list of all the items you want to buy and where has the best price. Christmas is one of those times of the year when it’s easy to let your spending get out of control because you’re buying gifts for lots of different people and it can be hard to keep track of where you’re up to. Having a list will help you keep your focus and steer you in the right direction. In theory, a list should also stop you from buying things that you don’t need.

Look out for special offers and deals

Retailers are all competing to get you to spend in their stores and sometimes you can use this to your advantage. However not all “special offers” are great value. As I’ve mentioned above, make a list and stick to it but if you have something on your list which is available from a number of different retailers, then it’s worth looking out for “free gift” offers or bundles. Many of the big name make-up counter brands offer free gifts if you buy two items so if you’re stocking up on your favourite lipstick you could pick up a beauty gift absolutely free.

Another trend I’ve seen recently is video game bundles. I recently ordered a copy of the latest Batman video game and I managed to find a package that included the video game plus two DVDs of the recent Batman films – all for the same price as some other retailers were selling the game alone for!

Is a gift set better value for money?

This tip relates to the research element. A festively-packaged gift set can be very alluring and sometimes they can be great value for money. If you’re looking at a perfume gift set, check the price of the perfume on its own to make sure you’re not being ripped off. It’s also worth remembering that festive gift sets are often the first thing to be reduced in the sales. So if you don’t mind waiting until after Christmas Day, you could save even more.

Christmas and IVAs: Can I take a payment break in my IVA for Christmas?

Unfortunately for people in IVAs it is not usually permitted to grant payment breaks for Christmas. This is because by the terms of the IVA you cannot miss more than two payments without putting yourself in breach of the terms.  If you were to take a payment break each Christmas in your IVA this would total five months. Additionally if you were granted a payment break then you could be forced to increase your payments to make up any arrears, which in the longterm doesn’t seem quite worth it.  Remember, although you may like a payment break over Christmas, there may be a time in the future duration of your IVA where you need it more.

Share your Christmas Shopping Tips and win £100 vouchers

Do you have any Christmas shopping tips to share? Leave a comment below and we’ll be picking one lucky commenter to win an £100 shopping voucher to add to their Christmas shopping funds!

Update – A big thank you to all who left their Christmas shopping tips. We have chosen a winner at random and they have been notified.