Nearly half of Shropshire spenders expect to borrow money this Christmas
A survey has shown nearly half of people asked will borrow to cover some or all of their Christmas spending this year.
And with a quarter of people in the UK worried about going into debt this Christmas, Shropshire's Just Credit Union – which carried out the survey of its members – has warned residents not to use unplanned debt to tide them over this Christmas.
Steve Barras, development officer for the organisation said: “Our survey shows that many people do set a budget for Christmas, but one in three say they always - or regularly - go over the budget they set themselves.
“It may seem easy to pay for presents and food on a credit card or overdraft, but it can soon become unmanageable and lead to financial problems in the New Year.
“And whilst it may also be tempting to use ‘Buy Now Pay Later’ offers, these again can add up and unless you have a clear plan to repay the loan within the interest free period it can again become an issue in the New Year.
“With a bit of planning, people can still have a great Christmas and also a stress-free New Year."
Just Credit Union advises that if people do need to borrow this year, they should make sure they have planned the borrowing, that it is affordable and that it is from a reputable registered organisation.
Research shows that across England there has been an increase in illegal money-lending and whilst they may at first appear to be a friend who is helping out it can very quickly become threatening, with extortionate interest rates charged.
People should check that anyone they are borrowing from is registered with FSA.
Steve added: “Just Credit Union is registered and makes sure loans are affordable. We will also set up a savings account, so there is money set aside for a rainy day or for next Christmas.
“Because we care about our members, rather than corporate profits, if we think someone is planning to spend a little too much this Christmas we will let them know the amount we think they can comfortably afford.”
People can find out more about Just Credit Union’s affordable Christmas Saver Loans by visiting its website justcreditunion.org and the News section has some hints and tips on managing your money this Christmas.
