Unless you are a hermit, the chances of avoiding Christmas debt completely are slim. Research shows that at least one in two adults in the UK will incur debt over the Christmas season and be faced with addressing these debts in January.
How will they fund it? Like it or not almost 70% will do so by using their existing credit cards or taking out new ones. Almost a quarter will use their overdrafts for the purpose and less than one in ten will take out a loan to tide them over. An attractive option for many people is to take out a zero per cent interest credit card, provided they can get it. The trick is to make sure to pay it off before the interest free period expires.
It is scary to think that almost four million people in the UK will be added to the number of those who already have debts and all because of the Christmas spending frenzy. January is a month of reckoning for many who have incurred serious levels of Christmas debt but it is also a month when many people try to grasp the nettle of their debt problems and make resolutions to solve their financial problems.
With the recession appearing to be receding with the appearance of the green shoots of recovery, it is certainly a time of hope for people with high levels of personal debt. As with any personal problem, there needs to be a will to change. The first step is to acknowledge that there may be a problem – one that is not going to go away without a pro-active approach. There are many firms of insolvency practitioners offering their services. Most of those offer free initial advice and January is as good a month as any to take advice.