Credit Card News Financial Christmas Hangover Hits Britain 15126969

Financial Christmas hangover hits Britain

06 January 2006
Many people in the UK are waking up with a financial hangover of more than £700 from their Christmas and New Year spending.

According to research from Britannia, around ten per cent of adults in Britain saved for up to 12 months before the festive season to ensure that they had enough funds to cover the £718.90 that Christmas costs per person.

However, 37 per cent of adults put their Christmas spending on credit and now many will take another 12 months to pay off the bill resulting in huge amounts of interest.

To avoid this problem in 2006 financial institution Britannia is recommending people start preparing for this year’s festive season now by opening a Regular Saver Mini Cash ISA paying 4.75 per cent tax free interest.

Neville Richardson, chief executive of Britannia said: “We do not really have a culture of saving in the UK these days but those who do, really reap the benefits of being organised with their money.

“The people who chose to save for big purchases such as Christmas, holidays and home improvements can add hundreds of pounds in interest to their own contributions by saving in advance.”

A previous Britannia survey revealed that 55 per cent of adults in the UK do not save money regularly and 57 per cent admitted they would use a loan, overdraft, or credit card if they wanted to buy something they couldn’t afford.

Click here for more information on savings accounts

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Written by Editorial Team