Debt after Christmas ‘a reality’

Millions of Britons look set to begin the new year in debt as a result of paying for Christmas “on the right now”.

This is according to a study commissioned by money.co.uk, which revealed that although almost a third are concerned about funding the festive season, just 15 per cent have tried to spread costs over the year.

And, while 4.7 million people are still paying off last year’s debts, 30 million adults in the UK will be entering 2010 with a collective deficit of £8 billion because of Christmas.

Managing director of money.co.uk Chris Morling noted that last-minute spending is a concern and may make January a difficult month for many people.

The site suggested that sensible budgets be established in order to finance the holiday season, a tip recently supported by moneysupermarket.com, which admitted that getting “carried away” with spending is possible around this time and budgets can prevent people from slipping into the red in the new year.

By Sarah Adie