Adverse Mortgage Borrowers Scared Of Christmas Spending

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For people who have spent the year battling adverse mortgage debt, the last thing they want to think about is Christmas, a day synonymous for overeating, overdrinking and overspending.

In fact, research from moneysupermarket.com has found that almost half of UK consumers are worried about funding Christmas this year.

Their fears may be justified as the website says two thirds of the population will not save enough cash in time to cover their Christmas costs, meaning credit cards, overdrafts, loans and December income will be used to take up the slack.

Kevin Mountford, head of banking at moneysupermarket.com says: "Christmas is always a difficult time of year financially and the current economic climate is not making things any easier. Preparation is the key during the festive season and consumers who have saved will be able to start the New Year without the burden of Christmas debt hanging over them."

Nearly a fifth of spenders have already saved a sufficient amount to fund this year's festivities and a third will have saved enough money by the time Christmas rolls round. However, a sixth of those surveyed said they are planning use a credit card for their Christmas purchasing.

Mountford says: "For those with insufficient savings, trying to fund the whole event through their December salary can be a bit of a stretch."

if you are struggling with adverse mortgage debt, the last thing you should do is consider amassing more unsecured debt. It might be hard to do during the Christmas season, but you must ignore the 'deal with it next year' mindset that will see a lot of people fall into even more adverse debt in 2010. Don't be tempted to spread the cost over a longer term otherwise you may be still paying for this Christmas going into next year's festivities.

Mountford says: "The best course of action will always be to take a ‘jam jar' approach to saving by putting aside money regularly throughout the year in a regular savings product which can start at £20 a month."

SOURCE: Moneysupermarket.com, 20/10/09

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