Personal insolvencies may increase as a result of Christmas spending – and continue to climb throughout 2010 – one industry expert has claimed.
According to the founder of financial blog MoneyStand.co.uk, Matt Spencer, many families in the UK will be met with “obscene” bills in the new year and have to “face the difficult question of how to pay it back and get out of debt”.
Referring to November’s figures from The Insolvency Service, which indicated that in the last year personal insolvencies rose by 28.8 per cent, MoneyStand.co.uk predicted that – although unemployment is a factor – excessive festive spending will force this number up in 2010.
“We urge consumers to spend carefully over the holiday season,” Mr Spencer said.
His comments follow those of the Finance and Leasing Association’s Fiona Hoyle, who recently noted that those who do not feel they will be able to repay their debts should talk to lenders “as soon as possible”.
By Sarah Adie