Skipton Building Society claims that for people making the purchases on plastic, the fact that interest on the credit card debt can cost more than the original purchase is a “ridiculous situation”.
John Goodfellow, chief executive of the building society, said: “Paying for the festive season on the credit card can end up costing more than was spent, which is a ridiculous situation to be in.”
He urged people to save for Christmas through a monthly debt management plan throughout the year.
Through putting money into specialist schemes offered by this and other financial institutions, savers can put away enough to pay for next Christmas.
In order to encourage debt management for next year, Skipton is only allowing access to funds from the end of November, helping people avoid the urge to break their vows to save.
If people act now and take advice, they could even clear debt and start saving for Christmas 2007 soon.