Debts & Loans

The Consumer Credit Counselling Service has revealed that last week was their busiest week ever, with over 9,000 callers attempting to contact them over spiralling debts in the run up to Christmas. National Debtline also reported callers dialling in droves, with calls to debt advisers more than doubling from an average of 10,000 to 21,000 last month.

 
The marked increase has been put down to families fretting over what to do at this expensive time of year as costs rise, recession looms, debts pile up and redundancy fears take over.
 
Although it varies how much people spend on Christmas festivities, the Children’s Mutual friendly society has calculated that each child in Britain will receive an average of £316 in presents and money this year. Even those without children will spend £604 on food, decorations, going out and gifts, a survey by Birmingham Midshires has stated.
 
Despite this being less than in previous years, many Britons struggling with debt are dreading this December and the pressure to buy pricey goods and gadgets for their loved ones.


 
Now debt advice charities are concerned that frantic families will turn to dangerous borrowing methods like taking out further credit cards and unsecured loans to get through the end of the year.
 
Spokeswoman for the Consumer Credit Counselling Service, Frances Walker, has said that there are far easier ways to save cash this Christmas: “In a way, all the troubles of recession, redundancy and the credit crunch should make it a bit easier to say to your family, ‘Look, everybody's finding it tougher to afford things this year: we just don't have as much to spend’.”

Parents reluctant to let their children down this year have been urged to be frank and tell them that they may not get every single item on their wish list.

 
Therefore, although families may be forced to scale back on extravagances this Christmas, it might be just what is needed to start the New Year in a better financial position.