Monday 5th November, 2007 

The only way many shoppers will be able to afford Christmas this year will be through flexing their plastic, getting them further into debt and causing future debt management problems.

Bank of England statistics indicate that an increasing number of consumers are using expensive credit cards to finance Christmas. This prediction has come after recent figures which show that the borrowing on credit cards has jumped by £310 million in September, representing the largest month increase in a year and a half. The total amount of borrowings on credit cards now stands at an unbelievable £54 billion.

The impact of poor debt management due to the overuse of credit cards was highlighted in a Shelter survey earlier last month, which reported that over a million people were using their credit cards to pay their mortgages and rent.

Debtwatchdog is concerned that people are not addressing their debt problems. It is poor debt management to use credit cards to finance a lifestyle which is neither realistic nor representative of the household income causes nothing but financial distress. What people should do is have a handle on the sending and try and balance this with their income. Our Statement of Affairs is a handy tool which will help you balance your income with your expenditure.

The Statement of Affairs will help you priorities what expenditures are necessary eg mortgages and what are not necessary eg buying sandwiches. This will enable you to formulate a plan of attack to address your spending habits and to lower your debts.

Immediate help is available either through our debt forum. Debtwatchdog urges everyone to complete a Statement of Affairs to ensure that financial priorities are not overlooked and any debt issues can be addressed before they get out of hand.