With close to £52bn* set to be spent before Christmas, Chiltern Debt Management is warning British shoppers not to binge spend now and face dire financial health issues in 2007.
Festive Folly
According to research carried out by the company, the number of people seeking help with their debts plummets towards the end of November and throughout December, only to peak when the festive fun is over and the bills arrive in January.
Chiltern general manager, Jackie Newton warns; “When it comes to Christmas, people need to stop burying their heads in the snow and start taking responsibility for their finances. By looking at their income and regular expenditure it is relatively straightforward for somebody to work out what they can, and can’t afford.”
“Admittedly, this may mean the latest must have games and gadgets aren’t going to be under the tree on Christmas Day, but long-term security is far more important than a fad that is likely be out of fashion before the turkey’s finished.”
Weekly Woes
Worryingly, Chiltern’s research also shows the binge spending cycle is being mirrored on a weekly basis throughout the year, with the number of people calling for assistance dropping away dramatically whenever the weekend approaches, only to peak between Monday and Thursday.
“The impact reckless spending can have on a person’s long-term financial health can be debilitating, and if people continually ignore long-term security in favour of short-term pleasures then the likelihood is they’ll quickly come to regret such behaviour,” says Ms Newton.
Key research findings
- Over the last ten years the number of people seeking help with their debts has consistently peaked in January with an average of 10.5 per cent of all yearly calls to Chiltern Debt Management originating in this period.
- Conversely the number of people struggling with their debts and trying to resolve their problems consistently falls into a trough during the festive period. Only 4 per cent of all calls to Chiltern Debt Management are taken during December.
- The pattern of peak and trough is mirrored throughout the year with 81 per cent of all calls from people trying to resolve their debt problems taken between Monday and Thursday.
- As soon as the weekend arrives people forget about their debt problems, only 19 per cent of all calls are taken between Friday and Sunday.
“Our advice is straightforward – think carefully about what you’re spending and if you aren’t sure you can afford it then it’s more than likely you can’t,” adds Ms Newton.
Note to Editors
- * figure based on APACS predictions for Christmas 2006
- The research was based on Chiltern’s enquirer and customer database from Oct 96 to Oct 2006, which holds tens of thousands records.
About Chiltern
- Chiltern was established in 1996 and provides advice to people in debt, ranging from a free DIY Debt Management Guide to a professional, paid for, debt management service.
- Chiltern charges the first affordable monthly payment to set up a debt management arrangement and 16 per cent of each subsequent payment.
- Chiltern is a founder member of the Debt Managers Standards Association (DEMSA) and adheres to its strict code of conduct and complaints procedure.
- Chiltern is also a member of the Trafford Trading Standards Better Business Scheme.
- Chiltern is part of the MoneyPlus Group, a one-stop shop for people who need help to manage their finances.
Press contacts: Daniel Kennedy or Steve Clark at Source Marketing
T: 0113 380 1644, F: 0113 380 1630, E: daniel@sourcemc.co.uk