Christmas spending catches up with us in March

Almost a third (31%) of personal insolvencies that occur in March have been triggered by overspending during the festive season, according to figures released by the insolvency trade body R3.

R3 members predict that there will be over 150,000 personal insolvencies in the UK in 2010.

These figures come as no surprise to R3 President, Peter Sargent, who commented: "Unfortunately, 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'. These people will now be suffering from the ‘Christmas Crunch', having seen their debts snowball since the large credit card bills began to hit their mats in January. With Spring round the corner, many feel like it is time for a fresh start and want to regain control of their finances.

"However, the stigma of insolvency means that many wait up to six months before admitting they have a problem - for many people in financial difficulty it is the biggest hurdle preventing them from seeking help. Sadly, the longer people take to get help, the fewer solutions are available to them."