Xmas credit brings debt problems

The pressures of meeting the cost of Christmas will see more than half of British consumers use credit cards to fund their spending - despite many still having debt problems from credit used in the last festive period.

According to new research from Consumerintelligence.com, 55 per cent of people say they will use credit this Christmas - although one in four say they plan to use their savings to make sure they stay out of the red.

Most alarmingly however, the amount of people risking such debt problems is 41 per cent higher than in 2009, and more than a third of these consumers are still paying off their debts from last year.

New Year is traditionally a time when more Britons seek debt advice and debt help, following overspending over the Christmas period, often seeking structured debt solutions, such as a Debt Management Plan or IVA.

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