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28/11/2011

Young still getting into more Christmas Debt than older generation

Nearly one in 10 (9%) people said they have already borrowed money to pay for Christmas, according to a recent survey by insolvency trade body, R3. 16-24 year olds were more likely to have borrowed money than any other group, with around one fifth (18%) already in Christmas debt, compared to 4% of over 65s. These figures are down slightly from 21% of young people and 6% of over 65s having borrowed money in the lead up to Christmas last year.

Frances Coulson, R3 President, comments:

“It’s worrying to see that the 16-24s are developing bad money management skills so early on. Fewer people than last year, across the board, have borrowed money but there are still some weeks until Christmas. With unemployment figures up, we can only expect to see more people saying they are struggling to afford the demands of the festive season.”

The survey also found that 13% of respondents said they did not think they would have enough money after Christmas to afford bills at the end of December. However, in London the figure was above the national average with 16% saying they would not be able to afford December’s bills.

A third of all respondents said it would take them one month or more to pay back Christmas debts. This is an improvement on last year, when just under half said it would take them one month or more.

Frances Coulson continued:

“The recent pick up in retail sales figures indicates that people have started their Christmas shopping early this year, and this is a wise choice. Given the ever increasing cost of living, particularly the hike in energy prices, spreading the cost of Christmas across a few pay cheques is sensible. However, there are still huge numbers of people who will struggle to afford Christmas and may well look to short-term loans and credit cards. They should be wary of the high interest rates that often accompany these products, as this will leave them lumbered with Christmas debt long into next year. I would advise anyone struggling with their finances around the Christmas period to seek the advice of a professional as soon as they can.”

-End-

For further information please contact:
Will Black, Communications Manager
T: 020 7566 4215 m: 07917 422 485 e: will.black@r3.org.uk

Antoinette Huka, Communications Officer
T : 020 7566 4217 m: 07825 679 462 e: antoinette.huka@r3.org.uk

Notes to editors:
R3 is the trade body for Insolvency Professionals, and is made up of 97% of the UK’s Insolvency Practitioners from all over the UK.
R3 comments on a wide variety of personal and corporate insolvency issues. Please contact the press office, or see www.r3.org.uk for further information.
R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by one of nine recognised professional bodies.
R3 stands for ‘Rescue, Recovery, and Renewal’ and is also known as the Association of Business Recovery Professionals.

Methodology note:
The telephone omnibus survey – Telebus, respondents are selected by random digit dialling. The sampling frame is all telephone directories in the UK. The sample is obtained by using “Random Digit Dialling”.

The survey interviewed 1000 adults aged 16 and between the18th – 20th November 2011.

Quota controls are set by sex, age, social class and region to ensure the sample is nationally representative of adults in telephone owning households in the UK. Data has been weighted to bring it in line with national profiles.

 

 

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.