Festive season to drive third of UK into debt

Monday 12th December 2011

Nearly one in three people in the UK will be pushed into debt as a result of the Christmas period, a survey from YouGov has revealed.

Furthermore, it is the younger generation who are likely to be hit the hardest, as the research – commissioned by banking platform Intelligent Environments – found that 64 per cent of Britons aged between 25 and 34 face debts or arrears in a range of areas including bills and council tax.

Of the 2,015 adults surveyed, results suggest 31 per cent are tipped into debt during their attempt to fund Christmas, whilst one in ten questioned admitted they will lose control of their spending.

Jerry Mulle, a director at Intelligent Environments, told the Independent: “Christmas is typically a cash-strapped time of the year but as harsher economic conditions start to bite, the number of people falling into debt or behind on their payments looks set to rise.”

Amongst the 31 per cent struggling with controlling their debt levels during the festive season, 58 per cent will spend more than average on their credit cards, 39 per cent will be overdrawn, 11 per cent will borrow from family and friends and 6 per cent would borrow money by taking out a personal loan.

The research also found that 26 per cent of people make use of their overdraft facilities at least once per month.