Brits still paying off Christmas debt

One in five Brits are still paying for their Christmas spending, with many using credit cards to foot the festive bill, research has revealed.

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Research by the Halifax has revealed that many of us still have Christmas on our mind when it comes to our finances.

Our wallets always take a beating over the festive period, but research by the bank has found that one in five people aged 18-44 are still paying for Christmas well into April.

It was found that 14% of us are paying off the festive debt either on a credit card, through an overdraft or via loan repayments.

Credit cards were found to be the most common way of paying for Christmas, with one in ten Brits using their plastic to pay off the bills.

A further 4% said they are still in their overdraft because of Christmas spending, while 3% said they are still repaying a loan they took out in December.

Of those still in debt because of Christmas, 18% expect to be fully paid up by June. But a worrying 9% said they will still be paying it off when Christmas 2012 comes around.

“We all face unforeseen costs from time to time, but Christmas shouldn’t be one of them,” said Anthony Warrington, head of current accounts at Halifax.

“If it’s December before you think about how to pay for it, it’s too late. Christmas is an expensive time of year as it is, but not budgeting for it well in advance can cost you more in the long run,” he added.

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