Lack of planning ‘leads to debt problems’

Failing to set out a Christmas shopping budget is one of the major reasons why so many UK consumers find themselves facing debt management problems in January, it has been claimed.

With millions of people already struggling to become
debt free, Halifax has suggested that a lack of planning will see thousands more people face financial troubles in early 2008.

The assertions from the financial services firm came after its own study concluded that Christmas gifts this year will cost British shoppers a collective total of close to £12 billion.

Mike Regnier, head of savings at Halifax, said: “We all know how expensive Christmas can be but by saving little and often we can make next Christmas that bit more manageable and that bit more enjoyable as a consequence.”

Samantha Owens, head of personal finance at Moneyfacts, recently warned that shoppers who are not sensible about the way they use their credit cards to spend this Christmas could be struggling financially in the new year.