Christmas spending ‘has caused insolvencies in March’

Christmas spending has caused many people to become insolvent in March, new research has shown

Statistics released by R3 suggest that 31 per cent – almost a third – of personal bankruptcies that take place in March are directly related to overspending in the festive months.

Members of the trade body have predicted that over 150,000 individuals will file for the option in the UK this year.

Peter Sargent, president of the company, said that many who were struggling financially at the end of 2009 were a little too extravagant in their Christmas outgoings.

He explained: “These people will now be suffering from the Christmas Crunch, having seen their debts snowball since the large credit card bills began to hit their mats in January.”

Earlier in the week, figures released by the Consumer Credit Counselling Service indicated that more than half of the individuals it recommended bankruptcy to last year were men.