One in five still paying Christmas credit card debts off in June

December is never the cheapest month of the year but 20% of UK households will still be paying off their Yuletide splurge in June, according to a new survey by the Your Money Matters Show.

Up to 90% will be back in the black by September 2008 but 3.9% won't have paid up by next December. The country is expected to splash out L53 billion over the festive season with L11.7 billion spent on credit cards.

However, fears over debt may be encouraging families to cut back this Christmas. Accounting firm KPMG has found that only one shopper in ten plans to spend more on gifts and food than they did in 2006. Last week's sales figures show high street shopping is down by nearly 4% from the same time last year and KPMG's survey has revealed that three quarters of shoppers intend to spend no more than L500 this year.

Will these good intentions will be carried through? Consumers may not be hitting the high street but who really wants to endure Christmas shopping with buggy and fractious toddler in tow? Another survey by eDigitalResearch predicts 87% of people will be buying their gifts online instead and the majority of thrifty e-shoppers visit three or four sites to get what they want at the cheapest price.

Finally, while parents are feeling the pinch, children will be cashing in.
The nation's kids can expect to receive L2.4 billion in cash presents from relatives, says a study from MoneyExpert.com. So if money's tight in the New Year, you know where to turn to for a loan.

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