Financial watchdog Which? has today revealed that almost a third of Britons are struggling with their financial situation. With the increased expenditure that comes with the holiday period, an estimated 32% of UK citizens are struggling.
With millions of Britons facing financial ruin, debt management companies are offering their services to those in the red. Rather than borrowing further cash in regards to extra loan or mortgage agreements, a debt management deal can redistribute their repayments in line with their financial situation.
Traditionally a time of year when excessive spending and indulgence is the norm it can be hard for many to ignore the temptation.
Television adverts, peer pressure and commercial superpowers inundate ordinary citizens with the positive re-enforcement that superfluous investment will lead to happiness and contented feelings. The most heavily hit are families with young children who want their offspring to enjoy the total holiday experience.
These people can be tempted to take out loans to help fund their ambition to spend. In many cases, rather than alleviating the problem it can lead to additional financial troubles further down the line.
Cheif Executive of Which? Richard Lloyd revealed the vicious cycle that many have become trapped in: "There are huge knock-on effects for people if they are not paying their loans, paying their bills, their housing costs on time. They often have to pay extra charges, pay extra interest where they are defaulting on debts, and they are unable to get access to credit.
"People are having to turn to increasingly expensive ways to meet their costs. It's a real worry for many, many people getting in to debt."
Which? researched the financial situation of over 2,100 people in October. Their results revealed that nearly 10% of households have previously missed loan, bill or housing repayments. This startling figure points to a discrepancy between the average income and the debts accrued.
Chancellor George Osborne is concluding work on the Autumn statement. The statement is essentially a budget and is due to be delivered on Wednesday 5th December.
The statement echoed the sentiments of the Which? report revealing that 2.3 million households in the UK has missed making a loan, bill or housing repayment. A further 1.5 million households were revealed to have taken out one or more unauthorised payday loans or overdrafts in order to make ends meet.
The financial integrity of the banking industry has never been so questioned in wake of the Mis-Sold PPI Scandal. Without quality advice and debt management solutions, this number could be set to rise over and after the expensive holiday period.