Millions facing 'financial meltdown' in New Year
MILLIONS of people are facing financial meltdown this Christmas after over-spending in the run up to the festive period despite the credit crunch, according to new figures released today.
A quarter of the UK’s population have risked their family’s future by splashing out on lavish festive celebrations they can’t afford.
As the full extent of the recession kicks in, it emerged that around 11.6m people will greet the New Year deep in a spiral of debt, according to new figures by financial group AXA.
Despite the credit squeeze new figures show that there was no sign of people cutting back on their Christmas shopping this year.
Millions dipped into their life savings to make sure they bought their Christmas tree, turkey and all the trimmings as usual.
Some 6.1m have left themselves with no savings at all - and money problems spiralling out of control - as they enter 2009 because of over-spending in the run up to December 25.
A quarter of the UK’s population have risked their family’s future by splashing out on lavish festive celebrations
Others have maxed out credit cards in order to buy that extra gift - with 3.7m people face a New Year hangover of mounting credit card bills.
Thousands hit the shops in the run up to the festive seasons as high street shops slashed prices to lure shoppers back to the tills.
Across the country the number of punters exceeded expectation as Debenhams, M&S and House of Fraser among other big stores held massive sales.
Sales rose by an unexpected 0.3 per cent last month as festive shoppers took advantage of the price war.
Shops made £5.8 billion a week last month, a 2.9 per cent rise in sales values against last November - despite the current financial situation - as they slashed 20, 30 and even 50 per cent off prices.
Steve Folkard, of AXA’s My Budget Day who ran the survey, said: “The deterioration of people’s standard of living and the effects of the credit crunch on finances are hitting people hard.
