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By Rachel Jones
Know Your Money Editor

It is hard to escape the constant reports of yet another struggling firm and therefore subsequent job losses. HSBC reported on Monday (December 1st) that 500 jobs were to go across the UK, which could highlight how no sector is safe from the economic downturn and the redundancies that may follow. As such, the Daily Mail reports that fears over job security have boosted the stress levels of employees and sent sickness through the roof. But for those who have unfortunately lost their jobs, or for individuals who are scared that they will do so, it could leave unanswered questions. How will credit card repayments, utility bills and mortgages be covered? And what advice and benefits are available to households worried about a not-so-merry Christmas?

Stalling on commitments

Many households may have funded the festivities on their credit cards, but a subsequent drop in income has now meant they are struggling to keep up with repayments, possibly not even managing to cope at all. Speaking to the Guardian, Emily Ballantyne, the specialist advice unit manager at Brighton's Citizens Advice Bureau, says consumers need to remember that "credit cards aren't priority debts. Most people don't understand that. Priority debts are your rent or mortgage, fuel bills and council tax. Non-priorities are unsecured loans - credit cards, store cards and catalogues".

However, having a plastic debt hanging overhead this yuletide may not be the best start to the new year. But what help is available to consumers worried about the credit card company's constant phone calls and red letters? Beccy Boden Wilks, from National Debtline, tells the newspaper that Britons should fill out one of their budget sheets to calculate available income after other essential financial commitments have been covered. Advisors will then help people to contact their creditors with an offer of how much can be realistically paid each month to cover the credit card bill.

Turning up the heat on utility bills

With chilly and dark nights already underway, people may want to consider some energy-efficient steps to cut down their home heating bills. And it does not need expensive home improvements to see a reduction in energy outgoings, claims the Energy Saving Trust. Indeed, turning down the thermostat on a central heating system by one degree can shave £65 off a home heating bill, while keeping the curtains closed at night time can trap heat, rather than let it out.

But what about benefits available? According to National Energy Action, there are over five million UK households living in fuel poverty, defined as needing to spend more than ten per cent of their total income to heat a home to 21 degrees Celsius. However, Jane Gatiss, PR manager for eaga and Warm Front, says that through the government's Warm Front scheme - which people can apply to by calling 0800 3162808 - loft and cavity wall insulation, central heating systems and glass proofing can be provided. Furthermore, benefits of up to £2,700 are available.

Mortgage misery

But families may be concerned that they may soon not have a home to heat at all if they continue to stall on mortgage repayments. The Guardian claims that from January 5th 2009, the government will support homeowners' mortgage interest after they have been unemployed for 13 weeks. And the size of the mortgage that qualifies for such help is increasing from £100,000 to £200,000. However, what about those who are unemployed now and cannot afford to wait?

Speaking to the newspaper, Sarah Robson, from the Council of Mortgage Lenders, says that the sooner an individual contacts their lender, the better, in order to find a reasonable repayment option. And it was recently announced by Northern Rock and Bradford & Bingley that they would wait six months before repossessing the homes of those struggling. Furthermore, prime minister Gordon Brown recently announced a scheme that would allow people made redundant to defer payment of some of their mortgage interest.

Relax, even if just for one day

Consumers may want to cast their money troubles aside for the big day and remember the true meaning of Christmas, says freelance consumer journalist Karen Kay.

"When times are tough and people are worrying about their jobs and things like that they still want to have an upbeat positive Christmas; that means having people opening the presents, feeling good and [having] family around them and that does involve a little bit of money. It doesn't mean blowing the budget but it does mean spending and giving people something that they really have joy in receiving."

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