Loans for Christmas ‘could be costly’

Taking on a loan to fund Christmas expenditures could be a costly way for consumers to manage their money, it has been suggested.

Robin Amlot, senior editor of Moneyextra.com, is convinced that loaning money to pay for seasonal spending can leave people with a serious debt management headache.

Furthermore, Mr Amlot insists that for many credit consumers borrowing money at Christmas can result in a financial burden that lasts throughout the following year.

“While many people may be tempted to turn to a loan for Christmas spending, it could be an expensive option,” he made clear.

“Borrowing for Christmas is going to store up problems for the future if you find yourself still paying off this year’s festivities when Christmas comes around again next year and the year after that and so on.”

Official figures from the Insolvency service recently revealed that more than 10,000 Britons entered an Individual Voluntary Arrangement (IVA) during the third quarter of this year.