Member Article

Crisis helpline tackles Christmas debt problems

THE average British person is set to spend £345.65 on presents for immediate family this year, with 35 per cent admitting they could blow at least £500 on gifts.

In addition, the latest statistics show that people will also spend an average of £178.57 on food and drink, £29.59 on decorations and accessories and £17.02 on Christmas cards and postage.

But the cost of excessive Christmas spending could be a major New Year headache as households struggle to meet payments on heavy-laden credit cards and overdue loan demands.

New figures suggest that two thirds of people expect to pay for the cost of Christmas using savings and nine per cent admit they would use a credit card or loan, with 19 per cent of people failing to budget properly for the festive season at all.

Paul Moorhead, of leading Rotherham insolvency practice Moorhead Savage, warns that heavy Christmas spending is often the last straw for families at the end of another tough year.

That’s why Moorhead Savage is once again launching its popular annual Christmas debt helpline to provide support for people who fear what financial horrors the New Year might bring.

“Even though there are real signs that the worst of the recession is over, it is easy to see why some people think that they should at least enjoy Christmas while they can,” Paul said.

“But taking on an increasing amount of unsecured debt or adding items to the credit card as a short term solution to a long term problem, simply to ensure a good Christmas is never a good idea.”

Paul added, though, that the best reaction to fears about debt was to seek immediate advice.

“Don’t let bills ruin the season because there are things you can do to help ease the situation and the first is simply to seek professional advice,” he said.

“Our debt helpline is open all the way through Christmas and the New Year on 01709 331 300 to ensure that people start 2015 with some hope for the future.

“No problem ever seems as bad once it is shared so don’t let debt spoil your family’s Christmas.”

This was posted in Bdaily's Members' News section by John Highfield .