It can take some people more than seven months to pay off debt accumulated in the run-up to Christmas, according to a survey by the Irish League of Credit Unions (ILCU).
Despite the current economic climate, the survey showed Irish adults expected to spend on average of €562 each this Christmas.
The survey indicated this level of spending would leave 38 per cent of people in debt.
With less than five weeks to Christmas, the ILCU today urged the public to avoid borrowing beyond their means.
“We have seen the impact of some of the toughest financial challenges play out in 2011. Worries over how to finance Christmas is not far from people’s minds,” ILCU chief executive Kieron Brennan said.
He also warned people not to be tempted into using moneylenders, due to the extremely high rate of interest charged and also to watch out for credit card debt, as a high rate of interest will be charged to balances that are not cleared on time every month.
The ILCU’s survey found 77 per cent of respondents did not feel any better about their financial situation than they did last Christmas.
It also showed that 55 per cent of respondents said they intended to use general savings or cash to pay for Christmas, with 28 per cent using specific savings set aside for Christmas.
Some 9 per cent will use their credit card with smaller numbers availing of credit union loans and money lenders.
In terms of the recovering from over spending during the festive season, 34 per cent fo respondents stated that it will take up to three months to recover, 12 per cent suggested it would take four months or more and a small proportion of respondents say it will take over 7 months to recover financially from Christmas 2011.
The survey also showed that women would take longer than men to recover from Christmas debt.
