With Christmas fast approaching, many shoppers are spending their hard earned cash, and then some. Figures released in January 2016 suggest that, last year, Christmas shoppers in the UK borrowed £1.5bn in loans and on credit cards. This has then lead to a New Year debt hangover which has made it extremely common for many households to be paying off the Christmas debts from credit cards well into the summer months. What invariably happens then is the summer holiday puts the same families into debt again and the vicious cycle continues.
Surveys have also suggested that many households are not simply turning to credit in order to enjoy the festive period; three million household were looking to sell or pawn their possessions in order to reduce Christmas debts.
Christmas is a consumer bonanza and is increasingly marketed towards people lightening their wallets. Terms such as ‘Black Friday’ and ‘Cyber Monday’ have now come into our daily language, with flash sales taking the British high street by storm. It seems it is becoming increasingly difficult to resist the consumer angle Christmas now brings us with mark downs and Christmas marketing campaigns beginning earlier and earlier.
The basic advice still remains however that people should face up to their debts as soon as possible and try not to be swept along in the consumerism of the festive period. Be strict when making a budget with what you can and can’t afford to help begin the New Year in the right way.
If you require legal advice regarding debt please do not hesitate to contact Farleys Solicitors Personal Insolvency and Bankruptcy team on 0845 287 0939, or alternatively you can email us and one of the team will get in touch with you. We offer free initial advice on bankruptcy, IVA’s, Debt Management Plans and debt issues.