Christmas debt ‘may not be so bad’

The levels of debt people will get into over Christmas may be much less than in previous years, an expert has said.

Discussing the approaching festive season, spokesman for moneynet.co.uk Andrew Hagger said it is probably too late now for anyone to start saving for this Christmas, although those keen to budget better for the occasion may benefit from getting in the habit with Christmas 2012 in mind.

In the meantime, however, the expert did suggest that while it is "inevitable" borrowing will rise, the pile of debt people have run up in the past over the festive season may be a lot smaller this time around.

"People will always spend more at this time of year but I think people are being a little bit more careful then they perhaps would have been three or four years ago," Mr Hagger predicted.

Consumers will be more "restrained" due to the fact that the economy is struggling and next year is also likely to be hard for many people.

If this view is correct, it will mean that not as many consumers will need debt management plans or other forms of debt help after Christmas, due to being more sensible with their spending and borrowing.

However, such optimism may not be justified, as a survey by M&S Money has suggested a large number of consumers will not keep within their means when it comes to festive spending.

Its recent poll discovered four out of ten consumers have not made a budget for their Christmas outlay, while of those who have, 46 per cent expect to fail to stick to it.

Posted by Paul Thacker