First-Stop-Credit.com News

Debt counsellors in the UK are warning that consumer debts will mount to record levels in 2006 because of Christmas overspending. Personal debt in the UK is already valued at over £1 trillion, with more than 3 million people owing more than £10,000 on loans, bank overdrafts and credit cards.

However, a statement from debt counsellors clearly states that unless consumers closely monitor their spending on Christmas gifts the UK’s debt problems will spiral in 2006. But as more and more consumers are spending beyond their means on credit cards and store cards, the problem looks likely to grow.

“People feel under increasing pressure to spend more than they can afford at this time of year,” says Porter. “Unfortunately, that means using their plastic or taking out a loan or upping their overdraft. The credit companies are only too happy to oblige,”said John Porter, a counsellor at a UK debt counselling company.