One in five credit card shoppers still paying for last Christmas

A fifth of Christmas shoppers that used credit cards last year are still paying off their Yuletide debts.

A total of 41 per cent of Britons paid for their Christmas last year by borrowing on a credit card or through a loan – but 17 per cent are still paying for festivities.

Only 29 per cent of shoppers paying by credit were able to clear their debts when the January bills arrived, according to research by money saving website Savebuckets.com.

Pressures on households are increasing this year as the cost of Christmas continues to rise – from £548 per adult in 2004 to £837 in 2006.

However, rising interest rates coupled with slow wage growth and higher utility bills mean consumer spending is lower than previous years, although expectations may well be just as high.

"Many Britons have struggled to pay off their credit card spending from last Christmas," said Marc Ames, marketing manager at Savebuckets.

"With rising costs of living and interest rate hikes curbing spending power this year, it is likely that many will have to make cutbacks this Christmas."

The research also revealed younger people expect to spend more over Christmas, with the under-24s spending £1,095 on presents, socialising, food, travel and other festive outgoings.

Across the country the biggest spenders were in Lancashire and the Midlands, while those in London, East Anglia and Wales were most likely to borrow to fund celebrations.

However, families in the south-west and north-east are most likely to be still paying off debts from last year.

Those looking to pay for Christmas are being advised to shop for early for 0% credit cards, while the festivities are expected to take a third of December's pay.