Xmas debt will go on into 2007

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Xmas debt will go on into 2007

Tue 19th Dec 2006

People will be counting the cost of Christmas into the new year, forcing some into looking at securing personal loans and credit offers in order to juggle their finances, according to the trade association for UK banks the British Bankers' Association (BAA).

Brian Capon, spokesperson for the BAA has spoken of his belief that due to people tending to spend more over the festive period, this can lead to mounting debts. Some credit providers such as Provident Financial are offering loans with interest rates over 100 per cent with some as high as 300 per cent.

Christmas shopping should be done earlier, advised Mr Capon, and he stated that some people leave their gift shopping to the last minute which results in them paying more for presents and getting "inappropriate" items.

"I think in that case there will inevitably be an increase in borrowing over Christmas on your card, but again I think the best thing is to be responsible with your borrowing as banks are responsible with their lending," said Mr Capon.

He continued: "There will inevitably be a lot more spending over Christmas, but whether that is going to lead to debt problems, I don't know."

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