Latest Debt News
Debt levels to worsen in New Year
12/12/2005 15:01:00
Christmas shoppers are being warned to be careful with their spending to avoid getting themselves into debt over the festive season.
The Debt Counsellors organisation fears that Brits will hit record debt levels in 2006 as they splash out this Christmas.
John Porter, a senior counsellor with the firm, explained: "People feel under increasing pressure to spend more than they can afford at this time of year. Unfortunately, that means using their plastic or taking out a loan or upping their overdraft. The credit companies are only too happy to oblige.
"With the situation as it is, this Christmas is going to have an especially devastating effect on personal debt. There will be a lot more sore heads than usual come the New Year, more through overspending than overindulgence."
Personal debt in the UK now exceeds £1 trillion and it is also estimated that some three million people are in debt to the tune of £10,000 due to credit cards, loans and overdrafts.
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