Millions still paying debts off from last Christmas

1 November 2013

christmas tree According to research, more than 4 million people are still paying off debts from last Christmas with two-fifths surveyed saying that they're already worried about how they'll pay for this Christmas, according to the government-backed Money Advice Service.

Worryingly, more than a million people plan to take out a payday loan to cover the cost of the festive period and a third of those surveyed say they'll be hammering their credit cards.

It seems having a modest Christmas isn't on the radar. Of course, that's made more difficult by huge increases imposes on energy bills, which could sting everyone before a present is even bought.

On average, it is thought that people will spend £487 on average this Christmas, which is down from last year's festivities. However, if they're getting payday loans to have a good Christmas, things could get bleak, even with the risk warnings that will be coming into place from the Financial Conduct Authority (FCA).

This MAS research found that pressure to please other people or trying to give children The Perfect Christmas was the reason that people overspend. Jane Symonds, of MAS, said: "Christmas is an exciting time to catch up with family and friends but can also be a worry financially, and very stressful if money is tight."

There's a money planner from MAS if you want to do some budgeting. Have a look over at the MAS/christmasplanner.

TOPICS:   Banking   Christmas   Loans

5 comments

  • james
    in related news - people are twats and should learn to live within their means even if that means not getting every kid their own PS4 this year.
  • Fat H.
    I guess it makes Christmas last the whole year if you're forever paying for it. See, they're not all bad these credit providers.
  • not d.
    Course they are, the kno bends think their four year olds need ipads.
  • Dick
    I'll use my credit card for all my spending for this christmas, just as I have done for the last ten years. Then pay it off the next month. Why pay with cash or a debit card, when I can get cashback on credit card spend? But of course, that lumps me in with people that will use credit cards and not pay them off. When they do these surveys they should ask will you use a credit card and pay it off, and will you use a credit card and not pay it off. Just asking will you use a credit card doesn't tell you much.
  • fibbingarchie
    'There’s a money planner from MAS if you want to do some budgeting.' When you click the link it states 'Spend less money than you earn, Fuckwit'.

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