Many of the consumers facing insolvency this month are likely to have spent too much money towards the end of last year, it is believed.
Christmas overspending might be a major factor behind 31 per cent of the insolvencies witnessed during the current four-week period, the trade body R3 has suggested.
"Many people who were struggling financially at the end of last year allowed their spending to spiral during the festive season, in order to give their families a 'normal Christmas'," Peter Sargent, president of the insolvency organisation, stated.
Credit card debt may have added to people's financial problems at the turn of the New Year, he suggested.
Overall, personal insolvencies could total 150,000 this year, Mr Sargent's organisation has estimated.
Last month, R3 also gave consumers the chance to find out more about store cards, with the body publishing an advice guide in relation to such financial products.
Posted by Martin Peacock.
