Debt advice urged for families over Christmas period

21/12/2009

Many UK families could be in for a stressful Christmas this year as parents seek to solve debt problems rather than spend on their children.

Four in ten Britons polled by the Financial Services Authority (FSA) admitted that they would be spending less over the festive period than they did last year.

In comparison, just 15 per cent said they would be spending more, with many putting this reluctance or inability to spend big money down to personal finance woes.

As well as meeting their mortgage commitments, a significant proportion of families cited paying utilities and groceries bills as their biggest financial concerns going into the New Year, while three per cent of those polled revealed that they have already sought out debt advice as they look to restructure their repayments.

Commenting on the findings, the FSA's Chris Pond suggested many more people could benefit from professional debt help, stating to the BBC: "We urge all families to do what they can to handle their money the best way possible to enjoy a stress-free festive season."

Furthermore, he warned that the situation could get bleaker for many as many families have "no financial air bag" in place to protect them from a sudden change in financial circumstances.

Price comparison site uSwitch recently reported that many Britons are likely to have sent e-cards rather than traditional Christmas cards this year in a bid to save money.

Kevin Still, director of EuroDebt, commented: "We would urge any family with money or debt worries to budget carefully and look beyond Christmas and the New Year, especially if there are no financial reserves.

"Many redundancies are unfortunately made just in the lead up to Christmas and the impact is felt at the end of January. The same applies to credit card spending.

"Loss of income remains the primary reason through the recession for people starting a Debt Management Plan [DMP] with EuroDebt. We would echo the FSA's advice in seeking professional debt help when personal finances become unmanageable."

Tags; Income Worries and Debt,

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