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Christmas debt 'will take months to clear'

People in the UK are expecting to have to wait months to be able to pay off their Christmas debt, it has been revealed.

Research conducted by Sainsbury's Bank has shown that it will take 1.11 million people between seven and 12 months to pay off the debt they accumulated from over spending over the festive period.

Head of cards for Sainbury's Donald MacLeod said: "We estimate that around 18 per cent of Christmas spending was placed on credit cards.

"Our research indicates that around 8.6 million people intended to put half or more of their festive spending on cards."

Sainsbury's estimated that £1.5 million was spent by consumers in the rush to buy presents on Christmas Eve alone, with over 19 million people having left their shopping to the last minute.

Over 60 per cent of people will be able to pay off their debt within a month, according to the bank.

However, for those who foresee that they may struggle in the coming months, an option to ease the stress may be to take out a consolidation loan in order to decrease monthly outgoings and interest repayments.

See how much you could save with a consolidation loan from Lombard Direct.

© Adfero Ltd

16/01/2008 13:03:01

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