January ‘most testing time financially’

January is the most testing time of the year financially for millions of people around the UK, according to recent research.

Figures from Norwich Union suggest that British consumers tend to run out of money in the early weeks of the year as their overspending during Christmas catches up with them.

In fact, the company reports that many people will be adding to their credit card debt burdens or dipping into their savings in order to survive until they are next paid.

In response to some of Norwich Union’s findings, Cesarina Holm-Kander, a finance expert, commented: “To find nearly half of Brits know their monthly salary won’t cover the cost of Christmas and new year is truly shocking.

“The ‘spend now, pay later’ culture has to stop. I hope this month is the shock that finally gets that message home.”

Prior to the Christmas period, the Citizens Advice charity was urging UK consumers to curb their spending to avoid a debt management hangover in the new year.