£1.5 trillion debt seeks holiday relief

Posted 2007-11-2

Debt consultancy Thomas Charles polled nearly 2,000 consumers in advance of the traditionally busiest time of year for department stores and found that nearly one quarter planned to reject spending on their credit cards this Christmas season.

Additionally, 10% of those polled stated they would avoid making any large transactions on credit for the next six months.

These indicators released today, point to a likely financial slump for providers and retailers alike.
The findings also signified a separate result of the poll, which indicated that 15% of pollsters already held unsecured debts from cards and loans in excess of £10,000.

“Interest rate rises and subsequent mortgage hikes mean that people have been relying on credit for their everyday expenditure - credit they can often ill afford,” said Managing Director of Thomas Charles James Falla.

Adding, “These results show that Britons are finally making positive steps towards confronting the amount of debt they are carrying. This is good news for the man on the street, but may signify bad news for retailers who have come to rely upon the vast amounts of credit spent at Christmas time.”

The total amount of debt among Britons is currently estimated at roughly £1.5 trillion.

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