Britons ‘relying on debt’ over Christmas

Nearly two thirds of Britons will be relying on debt to see them through the festive season, new research has found.

Norwich Union’s Frugal Festivities survey revealed that 34 per cent will be using credit and store cards, overdrafts or loans from their family to help pay for Christmas this year, while 43 per cent are set to reduce all excessive spending, cutting back on items such as crackers, decorations, wrapping paper and stocking fillers.

“The Christmas and New Year period is a great time to take stock and get your finances in order,” Louise Colley explained, warning: “Without a plan to pay off festive debt as quickly as possible, many may find themselves still paying the price by the time Christmas comes again.”

Recent research by Callcredit supports Norwich Union’s findings, as the credit reference agency’s survey indicated that 27 per cent of the UK’s adults are planning to cut their Christmas spending by at least half in 2008.

By Tom Musk