Britons likely to seek debt help post-Xmas

29/12/2009

Almost four million people in the UK have fallen into debt as a result of paying for Christmas this year, new research has suggested.

The study by industry body R3 found that close to three million people are still struggling with their debts from the last festive period.

Meanwhile, six million Britons fear that they will be unable to pay off their bills in the New Year.

Peter Sargent of R3 urged consumers to be more careful with their spending in 2010.

"Christmas can be a treacherous time for people who are struggling already to make ends meet," he added.

"While many people have been careful in their spending throughout the year, worrying numbers are set to break these good habits resulting in a financial nightmare for the New Year."

Separate research by R3 suggested that there are likely to be more than 150,000 personal insolvencies next year, with a spike in the first few months of 2010.

Kevin Still, director of EuroDebt, said: "With so many indebted consumers still struggling to pay off last Christmas it is no surprise that problems will be compounded over this festive season.

"Reduced disposable income means it is not possible to repay spending on credit and unsecured borrowing is now even more expensive. EuroDebt would expect to see a rise in requests for debt advice once reality hits home."

Tags; Income Worries and Debt,

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