Brits use cards to build Christmas debts

01/12/2009

The Christmas blowout will result in British households facing an £8 billion "hole" in their budgets in the New Year, Money.co.uk has predicted.

According to the price comparison website, while 31 per cent of UK adults are "worried" about paying for Christmas, just 15 per cent have budgeted sensibly for the festive period by spreading their costs throughout the year.

Elsewhere, 14 per cent will fund their gift and food purchases through credit cards and 71 per cent will scrape together money that is "available at the time".

Chris Morling, managing director of money.co.uk, said: "There is no reason at all why families across Britain should not have a wonderful Christmas this year, but you have to worry about the effect all this last minute spending will have in January.

"Lots of people are likely to be very short of cash going into the New Year, which would not make for a great start to 2010."

Money.co.uk also revealed that ten per cent of UK adults (4.7 million people) are currently paying off debts built up during the Christmas 2008 period.

Tags; Debt Management and Banking, Retirement Money Problems, Credit Card Lifestyle,

• Share
• 
• 
• Store
• 
• Follow
•