Overspending at Christmas Leaves 4 Million People in Debt

London (PRWEB) January 23, 2010

Almost 4 million people have entered into debt to pay for Christmas 2009, according to a new report. Research undertaken by GfK NOP on behalf of R3, shows that 3,989,272 people in the United Kingdom have found themselves faced with high levels of debt as a result of festive period spending.

The research highlights that some 6,483,567 Britons worry that they will not have sufficient financial resources at their disposal at the end of the month, due their high levels of Christmas spending, and consequently will be unable to pay their household bills.

The study, conducted during December 2009, found that that 8% of the 1,000 adults interviewed have borrowed money from banks, friends, family members or others in order to cover the cost of Christmas. Alarmingly, the report also outlines that almost 3 million people (2,991,954), equating to 6% of Britons, have admitted that their lives are still shadowed by the debt acquired as a result of last Christmas.

The study indicates that both guilt and peer pressure play prominent roles in many people’s decisions to over stretch their budget at Christmas time. The research documented that 33% of the respondents felt a sense of guilt as they believe they have not succeeded in meeting the expectations of their friends and family over the course of the festive period.

Derek Oakley, Insolvency Director at Debt Free Direct commented on the findings, “Christmas can be a difficult financial time for consumers, especially those already struggling with debt. In turn, the added financial pressure of the festive season may lead to an increased number of Insolvencies in January.”

In light of this report, Mr Oakley urged struggling consumers to seek impartial debt advice, “Many consumers may not be aware of the debt solutions available to them. When seeking help, it is vital that consumers should get advice that is based on their individual circumstances.”

Last year saw record level numbers of personal insolvency cases throughout the UK, and 2010is likely to see an increase as a direct result of many spending beyond their means in order to cover the cost of Christmas. Debt Free Direct, the UK’s number one IVA Company, encourages those struggling to pay post-Christmas debt to assess their expenditure, create a realistic budget, and seek professional help sooner rather than later.

Established in 1997, Debt Free Direct specialises in providing impartial debt advice for UK consumers. For more information about personal insolvency and debt solutions including IVA, debt management plans and bankruptcy, visit the Debt Free Direct website http://www.debtfreedirect.co.uk/.


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