January set to be a financial struggle for many

8 Jan, 2015

According to a UK debt charity more than six million people will struggle with their finances in January as a result of too much spending in the run up to Christmas.

The Money Advice Trust says it is expecting its National Debtline advice service to get very busy this month, after research suggests one in eight people are “likely to fall behind with their finances” due to festive spending.

The research also found that 23% of Britons will save earlier for Christmas 2015 than they did in 2014; while a third (34%) had to borrow money to pay for presents.

Worryingly, more than one in five peole bought Christmas food on credit.

Joanna Elson OBE, chief executive of the Money Advice Trust, said: “After a Christmas that millions of people put on credit, we are unfortunately expecting an increase in debt problems in the New Year. The fact that so many people went straight online for advice on Boxing Day shows how fragile many households feel their finances are going into 2015.”

“More concerning, however, are the millions of people who may not seek advice at all, and thousands who will get off to a bad start to 2015 by turning to a fee-charging debt management company that only wants to make a profit out of their situation.”

“Our New Year message is simple. If you are dreading the arrival of that first credit card bill in a couple of weeks, now is the time to act. Set a budget by working out how much you have coming in and how much you need to spend each month, and open all of your statements to get a handle on how much you owe.”