Christmas amasses masses of debt

Almost one third of people admit to going into debt to ensure a good Christmas celebration, a survey has found.

Ten per cent of those people did not finish paying back the loan until December of the following year.

This year, a third of people also said that they were cutting back on festive spending to counter the effects of the 'credit squeeze'.

Simon Coughlin, media relations' coordinator for Cornhill Direct, exclaims: "It seems extraordinary that one day in the calendar can have such an impact upon people's finances."

Home insurers are warning householders to contact them if they feel that the large influx of high-value gifts may exceed their contents insurance policy.

Simon Coughlin continues: "The concern for insurers is the potential for crime over the Christmas period. Official recorded crime statistics reveal an increase in domestic burglaries during the coldest and darkest months of the year."

Many home contents insurance policies automatically increase the sum insured to compensate for Christmas, but certain individual jewellery gifts may need to be checked, for example.

29/11/2007 11:31:11