Hundreds facing a festive debt spiral

RECORD numbers of Calderdale families could plunge into debt as a direct result of Christmas this year. Calderdale Credit Union has estimated more than 600 families from across the district will apply to them for loans, with as many again borrowing money from doorstep lenders.

The Citizens Advice Bureau warned, by the time Christmas was over, they expected to be helping hundreds of people with debts in excess of £100,000.The shocking figures reveal the full extent of pressure on parents who have to buy for children, entertain friends and family, and attend work celebrations.

Increased winter energy bills and a slowing down of the economy will also add to the rising mountain of festive debt in Calderdale, it was warned. Pam Priestley, manager at the credit union which has offices at Ovenden and Halifax, : "The number of people after loans is beyond anything we've witnessed before.

"We have already had nearly 500 loan applicants for Christmas, which is more than double what we had last year - and it's still quite early days.

"And there will almost certainly be hundreds of other peoples who go to loan companies rather than coming here to pay for Christmas." She added the collapse of Farepak Hampers had knocked confidence in such saving schemes probably adding to the number of borrowers.

"Matt Mills, chief executive of the Citizens Advice Bureau, urged people to think carefully about their finances before indulging. "We don't want to preach or tell people not to enjoy Christmas because everyone deserves to relax but people do need to be aware, heavy spending and loans will come home to roost.

"The new year always comes sooner than we think. Often Christmas isn't the sole cause of debt but it is the straw that breaks the camel's back." He advised anyone with money worries to attend the Citizens Advice Bureau before rather than after Christmas.

news source : http://www.halifaxcourier.co.uk/