Britons 'still to pay off last Christmas' debts'

30/10/2008

New research from Savebuckets.com has found that many people have not paid off last Christmas' debts.

The financial website found that four in ten people used cards or loans to meet their festive costs in 2007.

However, 24 per cent of this group still have to pay back some or all of these borrowings - prior to this year's spend.

A further 29 per cent had paid off the cards and loans spending by January, however.

Credit conditions have toughened this year, with banks affected by the financial crisis withdrawing many of their cheapest deals from the market.

James Wenger at Savebuckets.com said: "With a rising number of Britons still paying for last Christmas it raises alarm bells over how the pattern will continue into 2009 as the economic turmoil continues."

Speaking to the Daily Telegraph, Richard Thompson, a partner at accountants PricewaterhouseCoopers, added: "It is clearly a concern if consumers are living beyond their means.

"There are segments of consumers doing this."

Tags; Debt Management and Banking, Young Family Finances, Credit Card Lifestyle,

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