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New research released today by UK direct grant-giving charity, Elizabeth Finn Care, reveals that OVER ten per cent of the population - nearly seven and a half million UK residents - have been forced into debt to finance Christmas present buying, socialising and travel.

 

This figure has almost doubled from Christmas 2007, with over three million more people admitting that they have had to borrow money this year - in the form of personal loans, using credit cards that they will not be able to pay back in full in the first month, or borrowing money from relatives - to be able to afford Christmas.

 

Nearly a quarter, or 24 per cent, do not think they will have enough money left over after paying for Christmas to comfortably pay their bills at the end of January.

 

Furthermore, 33 per cent of all participants claim they don’t have enough savings to cover unexpected expenditure in the coming months. Added to this, nearly half (48 per cent) believe they will see their levels of disposable income fall this year.

 

Jonathan Welfare, Chief Executive for Elizabeth Finn Care said: “Our figures show that over 20 million UK residents fear they don’t have adequate savings to cover unplanned costs in the coming months. In the current economic climate of high unemployment and increasing job losses, this is a grim reality for people with no savings who may face unexpected unemployment.”

 

Some 14 per cent of participants believe that it will take them longer than a year to pay back the money they have borrowed, which means that they will still be paying off last Christmas come December 2009.

 

Jonathan Welfare said: “Prior to receiving help from Elizabeth Finn Care, 32 per cent of our beneficiaries had to forgo some meals. With people having to start the New Year in debt, we fear that increasing numbers of people may have to face this kind of sacrifice in order to afford to live within their means.”

 

 

 - ENDS -

 

Elizabeth Finn Care is a UK direct grant-giving charity, dedicated specifically to helping people in poverty. In the past five years, Elizabeth Finn Care has given £13 million in direct grants.

 

The Charity's tailor-made packages include much-needed regular financial help, assistance with mobility, house and home repairs, transport and travel, back to work education and training, and general help around the home.

 

The research was conducted by GfK NOP for Elizabeth Finn Care in the second week of January 2009. Exactly 1,000 adults aged 16 and over throughout the United Kingdom were surveyed in regional proportion.