Almost 4 million people (3,989,272) have already gone into debt to pay for Christmas this year, according to research released today by R3, the insolvency trade body.
The research also finds that over 6 million people (6,483,567) fear they won't have enough money to pay their bills at the end of the month due to Christmas spending, and 3 million (2,991,954) admit they're still paying off debts from Christmas last year.
Peter Sargent, President of R3 says:
“Christmas can be a treacherous time for people who are struggling already to make ends meet. While many people have been careful in their spending throughout the year, worrying numbers are set to break these good habits resulting in a financial nightmare for the New Year.”
R3 suspects that that peer pressure has a significant part to play, as research shows that a third of people (33%) 'feel guilty' if they fail to live up to the expectations of family and friends at Christmas time.
The impact of Christmas over-spending usually hits in the New Year. R3 members are expecting 154,355 personal insolvencies in 2010 in the UK, and the first few months of the year are likely to see the greatest number of casualties.
Peter Sargent says:
"Personal insolvencies hit record levels in 2009 and we usually see a rise in the New Year due to festive over-spending. We're urging people not to spend more than they're earning and to seek professional advice as soon as possible if debts start mounting up.”
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Posted 26/12/2009 12:51:21 |
