Christmas Credit Crunch Crisis

Christmas is just around the corner and after such a terrible financial year many people will be looking to make this years festivities as memorable as possible. Some experts predict that spending on credit cards could rise over the Xmas period as people look to put the "doom and gloom" of last year behind them.

"Taking out a personal loan over the Christmas period could prove to be an expensive option", said a spokesperson from a leading financial group.

Research shows that some people have still not paid off existing debts that have been accrued over the recession, and choosing to borrow more money for Christmas doesn't make financial sense.

"We've all had a bad year financially, but I think people need to accept that this Christmas should be a low-key affair before they splash money they cannot afford on gifts, food and alcohol".

In addition, figures from YouGov show that some 15 per cent of Britons are in debt of over £10,000 and that 42 per cent of adults under 35 plan to cut down on superfluous spending this year.

"Some people have decided to tone down Christmas this year and pay-off existing debts before spending anymore cash. This is the best way to go about things - just because you can't afford as many gifts as previous years doesnt mean you'll have a bad time, people will appreciate you giving up your time to be with them rather than sending a gift".

The experts also advise that it's not too late to start budgeting for Christmas, with over two months until the big day left to organise your finances.

"Its not too late to budget properly for this Christmas, set our your limits and a comprehensive spending plan and you'll be able to stick to a decent budget this year" said the finance expert.