Brits to shun Christmas on credit
One in four Britons will shun credit cards this Christmas as they focus on repaying their debts, a survey showed.
Around 15% of people are currently in serious debt, owing more than £10,000, according to debt consultancy Thomas Charles.
But the group found that consumers were now focusing on how to improve their financial situation.
One in 10 people said they planned to take on a second job or increase their earning potential in order to clear their debts as quickly as possible, while 8% said they would try to avoid making a large purchase using credit during the coming 12 months.
A total of 25% plan to avoid using credit cards at all during the festive season.
Men continue to have higher levels of debt than women, with 27% owing at least £5,000 through credit cards, overdrafts and loans, compared with 22% of women.
But 17% of men said their attitude to money had been shaken by their debt crisis, compared with 15% of women.
James Falla, managing director of Thomas Charles, said: “Interest rate rises and subsequent mortgage hikes mean that people have been relying on credit for their everyday expenditure - credit which they can often ill afford.
“These results show that Britons are finally making positive steps towards confronting the amount of debt they are carrying. This is good news for the man on the street, but may signify bad news for retailers who have come to rely upon the vast amounts of credit spent at Christmas time.
“There is still a massive debt mountain for Britain to climb, but this report signifies that the bad news about debt is finally sinking in.”