Why do so many people get into debt over Christmas?
The demand for debt recovery services is expected to surge in the new year as businesses struggle to collect money owed by customers who have fallen into debt over Christmas.
A 2017 article in the Independent found that more than three quarters of UK families with children make financial sacrifices at Christmas in order to buy presents. Of these families, one in eight delay paying household bills in order to buy presents, and one in ten postpone paying their rent or mortgage.
But why are so many people making such reckless financial decisions over the festive period?
Pressure to overspend
Christmas is now more commercialised than ever, and families are spending more and more each year in an attempt to have bigger and better Christmases.
Brits are feeling the pressure from family, friends and the media to spend beyond their means in order to keep up with Jones’.
The list of Christmas must-haves seems to get longer each year, especially for families with children. Local Christmas events can be very expensive, kids now want advent calendars with toys not chocolate, ‘Christmas eve boxes’ have gained popularity, and expensive technology tops many children’s Christmas lists.
Putting Christmas on credit
Those that can’t afford all the expensive extras at Christmas are making reckless financial decisions by delaying paying important household bills and spending well beyond their means on credit.
This results in many families in the UK starting the new year with a dark cloud of debt hanging over their heads and a serious case of the January blues.
Debt collection services
Businesses are also feeling the pinch in the new year as they see a surge in non-paying customers and time taken up by chasing payments.
If your business requires help recovering debts owed in the new year, get in touch with our team here at Churchill Recovery Solutions by calling 0333 320 0748. Our services cover every stage of the collection process, from sending letters and making phone calls to doorstep collection.