Recovering from the cost of Christmas

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Payplan reveals 45% are still paying for presents bought for Christmas 2002

Payplan, one of the UK’s leading providers of FREE debt advice and management, encourages those who are experiencing difficulty in meeting their post-Christmas debt repayments, to look at alternatives to fee-charging debt managers and debt consolidation services as a way of controlling their festive debts. Payplan’s service has no hidden charges or management fees so every penny goes towards paying off consumers’ debts as quickly as possible.

For many people, the cost of Christmas celebrations may be too much on top of existing debts from credit cards, store cards, loans and hire purchase. Payplan research has found that almost half of respondents pay for more than 40% of their seasonal expenses on credit. The prospect of struggling to pay off Christmas debts along with all other outstanding bills can be extremely stressful - with 45% still paying for presents bought for Christmas 2002.

The research, carried out before Christmas 2003, revealed that 74% of respondents intended to spend £700 or more, yet only 4% had saved the full amount of their expected spend. Mounting debt also impacted people’s enjoyment of the Christmas season, as 60% felt pressured or worried, due to Christmas spending.

“Although debt consolidation companies may seem to offer an ideal solution to mounting debt after Christmas, consumers are basically paying one loan off with another, thereby not actually ‘freeing’ themselves from the debt trap”, says John Fairhurst, Managing Director, Payplan. “However, Payplan knows how important it is to make repayments that reduce consumer’s debt. It is frustrating and pointless if they are paying high interest or management fees that effectively increase their debts.”

Payplan can help consumers come to an affordable flexible monthly repayment schedule with their lenders based on what they can afford after a realistic income and expenditure has been assessed. Their payments are re-evaluated regularly through Payplan’s customer care programme, so that any changes to their personal circumstances can be taken into account.

For further information, consumers can call Payplan’s free helpline on 0800 917 7823 or complete and submit the Debt Calculator form for a free assessment.