20 December 2005
Up to 20,000 people could face bankruptcy in the first three months of 2006, with 6,500 insolvencies coming as a direct result of Christmas overspending, a new report from Grant Thornton has claimed.
The report announced that typical debt sufferers have mortgages of between £50,000 to £100,000, with additional credit and debit card debts of up to £50,000.
Statistics showed that more than 12,000 people have already gone bust in the third quarter of 2005, with 5,500 more entering into individual voluntary arrangements.
Mike Gerrard, head of Grant Thornton's personal insolvency practice, commented on the figures.
"Many people will be funding their Christmas shopping sprees on their credit cards.
"A little overspend will not break the bank for most, but for those who are already financially overstretched, spending that little bit more during the festivities may represent the last straw that breaks the camel's back," he said.
He added some words of advice to binge spenders: "Whilst January tends to be the time for new year resolutions, it would not go amiss for some to start theirs early."
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