Borrowers struggle with Christmas credit hangover - Credit cards - News - Moneyfacts

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Borrowers struggle with Christmas credit hangover

Borrowers struggle with Christmas credit hangover

Category: Credit cards

Updated: 02/04/2012
First Published: 02/04/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Britons have been urged to make savings plans for next Christmas after research revealed one in seven people are still trying to pay off the credit bills they ran up last year.

New research from Halifax has revealed 14% of people are still paying for Christmas either on a credit card, through their overdraft or via a loan.

Breaking this down, one in five people (20%) aged between 18 and 44 are still trying to make up for their festive financial outlay.

Meanwhile, of those over the age of 45, around one in ten (9%) remain in the red more than three months after the event.

Worryingly, 9% of people still paying for last year's festive season admit it could take them until 2013 before they get straight.

On average, just under a third (29%) of Christmas budgets were paid for on a credit card.

Although half (51%) of people did not use a credit card, 9% put their entire Christmas spending on their credit card.

Despite the shocking statistics, just one in five (19%) people are already planning on how they will pay for Christmas in 2012.

More than a quarter (28%) of people said they plan to save for Christmas 2012, but have not yet started to think about it.

However, 47% of people said that they do not plan to save for Christmas 2012 at all.

"We all face unforeseen costs from time to time, but Christmas shouldn't be one of them," said Anthony Warrington, head of current accounts at Halifax.

"If it's December before you think about how to pay for it, it's too late.

"Christmas is an expensive time of year as it is, but not budgeting for it well in advance can cost you more in the long run."

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