1 in 4 Christmas borrowers still paying

Thursday, 30 October 2008 11:01

Last Christmas I gave you a widescreen TV and the very next year I'm still paying it off. This year to save me from tears, I'll buy in a charity shop.

A poll of 2,026 people shows 24 per cent those going into debt over Christmas last year are still paying it off.

The 30-somethings were found to be the most likely to be racking up debt to pay for Christmas - with 47 per cent doing so last year, 35 per cent of whom still paying off their Yuletide borrowing.

Across the country, 39 per cent of those in the North went into debt last Christmas, while 33 per cent in Scotland did. A third of those in debt north of the border for Christmas are still clearing their debts.

James Wenger, of Savebuckets.com, which commissioned the research, said: "With a rising number of Brits still paying for last Christmas it raises alarm bells over how the pattern will continue next year into 2009 as the economic turmoil continues."

Research from compareandsave.com shows 35 per cent of people will not be cutting back on spending this year.

However, with the rising cost of living, Father Christmas's sack will be less bulging - as spending focuses on food.

Of those who plan to cut back on spending - average budgets are reduced by £150.

To save cash 70 per cent are cutting people off their Christmas list to save cash, while 15 per cent said they would pass on old gifts.

Brad King, managing director of Compareandsave.com, said: "The credit crunch will not be a barrier to most people enjoying Christmas this year. In the current climate consumers have learnt to become savvier when it comes to shopping - searching for the best possible deal and being creative with their money to make it go further."

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