In the red for Christmas: 12% of Scots still repaying debts from 2013 festive period

3rd November 2014

*More than a third of Scots say they borrowed to cover last year's cost.

*1 in 3 of those who borrowed still owe over £500.

*Only half of Scots say earnings alone will cover cost of this Christmas.

Christmas is always one of the most expensive times of year. Worryingly, as shoppers start planning for the 2014 festive season, there are many who are still paying off debts built up last year. A new survey* conducted on behalf of Scottish debt advice and solutions provider Debt Advisory Centre Scotland (DACS) has revealed that more than a third (37%) of Scottish respondents borrowed to cover some or all of the cost of Christmas last year, either by using credit cards, loans or other forms of credit. Overall, 12% of Scots say they are still repaying debt built up last Christmas.

According to the findings, more people in Scotland borrowed ahead of last Christmas than the year before. A survey carried out for DACS in October 2013 found that one in five (21%) Scots used credit to help meet the cost of seasonal gifts, food, drink and entertainment in 2012, compared to the more than one in three who did so last year.

Of those who did turn to credit to help meet the expense of the festive season in 2013, one in 20 (5.5%) have less than £100 outstanding. However, nearly a third (32%) revealed they still owe over £500, and 14% admitted they have a debt of over £1,000 they are still repaying.

Despite the number of people still forking out to cover last Christmas' debts, one in nine (12%) respondents in Scotland revealed they will need to borrow again to afford all the costs of the festive season this year. Just half (51%) said that they would be able to meet the expense from their earnings alone.

Ian Williams, spokesman for DACS, says: "Christmas can be the most expensive time of the year for many of us, thanks to all of the present-buying and food prep, as well as the travel many of us are expected to do. This might be why some Scots feel the only way they can afford to celebrate is by using credit.

"However, if you're still repaying last year's Christmas debt, borrowing more on top of that may put even more of a strain on your finances - and make 2015 feel pretty gloomy. At the risk of sounding like Scrooge, if you’re still repaying debt from Christmas 2013, rather than borrowing more this year it makes more sense to work out exactly what you can afford to spend and stick to that budget. If you need assistance with that process then consider seeking expert help with your debt."

For more information, visit the Debt Advisory Centre Scotland website at www.dacscotland.co.uk/