Festive hangover lasts until next Christmas

Almost 4.5 million credit card customers haven't cleared debts from last Christmas, and are about to add this years' spending to the balance.

People who have carried forward a debt of £1,000 have spent £169 in interest charges alone, if the rate was 16.9 per cent.

Sean Gardner, chief executive of MoneyExpert.com, says: "It's not time to cancel Christmas, but for millions of us, it really is time to cancel some credit cards.

"We can all give into temptation at Christmas and put it on plastic but if the debt lingers from year to year you're starting to get into trouble."

Teresa Perchard, director of policy for Citizens Advice, also warns: "It is very easy to get carried away at Christmas and spend on the spur of the moment, especially if people leave it to the last minute.

"But every year we see a huge increase in debt problems immediately afterwards. With a little forward planning, Christmas panic buying can be avoided."

Householders are being warned that utility bills, mortgage repayments and insurance premiums are all likely to rise during the first few months of the New Year.

04/12/2007 13:21:45