Old Christmas loans may fuel Debt Consolidation demand
According to recent studies, more than 4 million people within the UK are still in the midst of repaying personal loan and credit card commitments, that were acquired for the purpose of coping with the financial strains associated to Christmas…last year.
One of the UK’s leading price comparison sites made the discovery whilst compiling a report on the rise in loan and credit acquisition for Christmas of this year. Surprisingly, more than 80% of consumers admit to still repaying loans from December of last year, with an additional 20% stating that they are paying off loans from almost 2 years ago.
The site also reported that the average Christmas loan and credit card borrower will amass yuletide debts of around £500, however, approximately 15% of people rack up more than £1500 worth of debt.
Commenting on the findings, one expert stated that although Christmas is one of the most significant and indeed special times of year, it is important for people to remember that it is only one day out of the year. As a means to avoid financial complications, borrowers must not overdo themselves at Christmas, as it is important to remember that people are at their most vulnerable from a financial perspective.
The latter statement is further enforced by the fact that there are more new cases of insolvency in January than any other month, and many lenders also note a stark increase in the number of new applications for debt consolidation loans at the beginning of each New Year.
