Christmas repayments: no end in sight

Posted 2007-12-12

Christmas credit card debt continues to be a problem for heavy spenders. 

According to new research, one in five Britons will still be paying for their Christmas spending in June. 

One in ten will be paying off their debts in September, and a further 3.9 percent will be celebrating Christmas next year with a hole still in their pocketbooks from 12 months ago. 

Figures released last week by MoneyExpert.com supported the stats, showing 4.4 million people are still paying off credit card bills from last Christmas.

“It never ceases to amaze me how Christmas continues to sneak up on people and how ill-prepared financially they are to deal with it,” said Cesarina Holm-Kander, presenter of Channel 4’s Your Money or Your Wife and speaker at this year’s Your Money Matters Show.

“To those who are spending without thinking about the bigger picture this Christmas, I would like to offer a little reminder - a credit card binge is not just for Christmas, it’s a legacy that could be with you for most of next year, too.”

Despite the increasingly high cost of gifts expected over the holidays, only 50% of Brits put aside any savings in preparation for Christmas. 

The biggest savers are in the north-east, but perversely these are the same people who are most likely to get into debt this holiday period.

Unsurprisingly, London is home to the most aggressive festive spenders in the country, with one in five shoppers dishing out more than £1000 in holiday bills.  Contrast with East Anglia, where frugal spenders average half that - spending £500.

Overall, £53 billion is expected to hit retail counters over the Christmas period - £11.7 billion of that on plastic.

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