If you're feeling financially hungover after the Christmas shopping splurge - you are not alone.
Figures show as many as 27million people will head into the New Year saddled in debt, owing more than £10,000.
If you're worried this may be you - there is help available. Here's our guide on how to tackle Christmas debt now, including where to safely move your money if you're on a high interest credit card.
There's also a lesson to be learnt from it all. Taking advice now can help save you from falling into the same trap next year - and planning ahead is the smartest way to do it.
That's where the 'penny challenge' kicks in - a scheme that collects all of your coppers across the year and saves it into a pot of cash.
How the penny challenge works
The penny challenge starts on 1 January and runs for a full 12-months. To take part, you have to put away a penny a day (at first), which gradually grows to pounds as the year goes on. By 31 December (providing you've been good) you'll have £671.61 to see you into the New Year.
To begin with, you put in 1p on day one - you'll then put in the equivalent amount of pennies to the day of the year:
Day 1: Put in £0.01
Day 2: Put in £0.02
Day 3: Put in £0.03
Continue until…
Day 100: Put in £1.00
Day 101: Put in £1.01
Day 102: Put in £1.02
Double it on day 200...
Day 200: Put in £2.00
Day 201: Put in £2.01
Day 202: Put in £2.02
And continue until the 300th day, when you...
Day 300: Put in £3.00
Day 301: Put in £3.01
Day 302: Put in £3.02
On the final 366th day (remember, 2020 is a Leap Year), drop in £3.66 and it's time to cash in your jar. You should have £671.61 in it (if you've stuck to the plan).
Can you afford to save even more?
If you think you can afford to save a bit more, why not give these clever challenges a go, too.
How to start a savings pot
Give yourself a goal – you are more likely to stick to it if you have something to aim for. If you have nothing to save for, then you are likely to save nothing.
Start small, with say £10 a month (that’s just £2.50 a week) and gradually build it up to the maximum you can afford.
Set up a standing order from your current account to a savings account for the day you get paid each month.
Or try saving 50p or £1 coins, putting a few away each week into a piggy bank. Once it reaches £10 pay it into a savings account.
Once you reach your first goal of a financial safety net, set a medium term savings goal such as for a big event in the future. That could be a big holiday, anniversary or a deposit for a house.
Keep an eye on your savings balance. It gets addictive watching it grow and will help you to keep on track.
