Christmas debt warning for families

Tuesday, December 1st 2009

Most parents earning less than £30,000 will struggle to meet essential costs this winter, according to a new survey.

The poll of 1,006 parents by Save the Children shows that 52 per cent are likely to use high-interest loans and other forms of borrowing to cover expenses such as fuel, clothing and food this season.

About 56 per cent said they would cut back on Christmas presents for their children, while 80 per cent of those earning less than £12,000 claimed that they will struggle with their finances over the course of the winter.

Fergus Drake, UK director for Save the Children, called the figures "shocking".

He added: "Families cannot continue to scrape by like this."

A recent study by Abbey found that almost 60 per cent of Britons will spend less on Christmas this year compared with previous festive periods, with 42 per cent set to reduce expenditure on presents for friends and family members.