BBA: Debts will be carried into new year

Brian Capon, spokesman for the BBA, said that people tend to take out loans during the Christmas season, or add to their credit card debt.

“People do tend to perhaps borrow more over the Christmas period and use credit cards. Perhaps they do carry some of that borrowing over rather than repay them in full,” Mr Capon said.

He added that this could lead to a debt problem, but this might not happen, for instance, if people take debt advice now.

Mr Capon urged responsible borrowing and for people not to take on more debt than they can afford to repay. He added that people should go to a responsible lender rather than one that with APRs as high as 300 per cent.

“I think in that case there will inevitably be an increase in borrowing over Christmas on your card, but again I think the best thing is to be responsible with your borrowing as banks are responsible with their lending,” Mr Capon concluded.