One in six of us have financial Xmas hangover

WE’VE had Black Friday, the Christmas splurge and Boxing Day sales, while the New Year markdowns are only just under way.

But far from delighting in the retail frenzy, millions of people have entered 2018 with a spending hangover, according to a survey.

One in six of us (16 per cent) admit they expect to fall behind in their finances this month as a result of the festive season, the equivalent of about 8 million people.

The figure, which is significantly higher than the 11 per cent who said they had overspent this time last year, is a vote of confidence in the post-Brexit referendum economy, but will fuel concerns about the debt mountain households are building up.

Out of 2,000 people questioned in research for the National Debtline, run by the charity Money Advice Trust (MAT), half said they had not put anything away towards Christmas before the start of December.

Just 14 per cent planned ahead and began saving before last summer for the extra costs of putting on Christmas lunch, buying presents and hitting the sales. The free debt-advice charity has teamed up with the Association of British Credit Unions to urge households to start planning in advance for next Christmas by tackling outstanding debts and sticking to a budget.

MAT chief executive Joanna Elson said: ‘With millions expecting to fall behind with their finances in January, we want people to be financially prepared for the year ahead.’

Research last month found that 37 per cent of people were paying for Christmas presents on credit.

It comes as separate research reveals that thrifty Britons are taking the charity’s advice and snapping up bargains in the sales as 2018 Christmas gifts. A survey by the Halifax revealed that 33 per cent of shoppers will buy discounted wrapping paper and 32 per cent are picking up presents to put under the tree.

Shoppers are expected to spend an average of £91.83 in the sales, with men splashing the cash at £106 and women following at £77. Across the UK, respondents in London expect to spend the most (£172) and those in Northern Ireland the least (£47).

Jon Roberts, managing director of Halifax credit cards, said: ‘Christmas can be an expensive time of year, so it’s encouraging that people are thinking longer-term.’