Yahoo Finance 11.6 million Britons are still paying for last Christmas with average debt more than £500
More than 11.6 million Britons are still paying off last Christmas even as this year’s festive shopping season begins to get into top gear.
New figures show that the average debt stands at £517 – suggesting that some £6bn borrowed last year is still outstanding.
Of those who borrowed money last Christmas and still haven’t cleared it, one in five say they still owe more than £1,000.
As the first high profile adverts from the likes of John Lewis, M&S, Tesco and Sainsbury’s, among other leading retailers, hit TV screens and online, warnings are being sounded about families getting themselves in trouble with money.
Research from the Debt Advisory Centre reveals that even though 23% of Britons are still repaying money borrowed for last Christmas, some 13% will borrow again this year.
Melanie Taylor, at Debt Advisory Centre, said: “For the millions with little or no savings and who are just making ends meet month to month, there is little choice but to borrow if they want to buy presents and other Christmas treats.
“Many of these people have no slack in their budget, so finding money to make the repayments in the New Year will be a struggle. It is no surprise that January and February is the busiest time for many debt advice providers.”
People under 35 are the most likely to have borrowed money to pay for Christmas 2015 – with 52% of 18-24-year-olds and 59% of those aged between 25 and 34 saying that they did so.
They are also the least likely age groups to have paid off last year’s borrowing with a third (24% and 36%, respectively) saying that they have yet to clear their balance.
By contrast, 64% of people over 55 say that they didn’t borrow money last Christmas.
