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Christmas debt hangover could last up to a year for some
Written by ey on 21 December, 2011New research out today suggests that more than a quarter of Britons will be left nursing debt management issues after the Christmas holidays are over.
A survey by price comparison site uSwitch.com has found that 62 per cent of people are currently struggling to find the funds for their festive spending and as many as 28 per cent will be left in the red come January.
Of those in debt, the majority will take almost six months to get back into the black while for eight per cent it will take more than a year.
Almost half (48 per cent) of respondents said that they feel more worried about festive finances than they did in 2010 and the same percentage stated that they have less money available than last year.
Some 52 per cent said that they will dip into their savings but more worryingly 42 per cent admitted that they are planning to pay for Christmas using credit such as a loan, overdraft or credit card.
A further 16 per cent said that they are prepared to sell possessions to get some Christmas money and three per cent will borrow from friends and family.
Michael Ossei, personal finance expert at uSwitch.com, said: "Cash-strapped consumers will be feeling a little short of Christmas cheer after another tough financial year.
"While the cost of living has rocketed, pay has been frozen or even cut and even those who have enjoyed a pay rise will have seen the benefits eroded as household bills soared.
"Splashing the cash at this time of year is very tempting, but for those already feeling the pinch a very merry Christmas could lead to a financial hangover that lasts well into next year."
Earlier this week, the Markit Household Finance Index showed that 38 per cent of people feel that their finances have deteriorated this month compared to November.