Millions of Britons are struggling with debts accrued from last year, new research shows.

According to a study conducted by MoneyExpert, some ten per cent (4.4 million) adults with credit cards are still making repayments on their borrowing from Christmas 2006. Consequently, the firm suggested that those owing 1,000 pounds on a card charging 16.9 per cent for the last 12 months will have spent about 169 pounds in interest over the course of this year. As a result of such a demand on their spending, consumers may also be struggling to meet other financial constraints, for instance secured loans, utility bills, council tax and mortgages.

The findings showed that it took three per cent of Britons two months to clear off their Christmas debts, whether accrued through loans, plastic cards or other means, while the same level of people also managed to do this within three months. In addition, two per cent of the population had to wait four months until they were free of debt.

Overall, those between the ages of 35 and 44 were revealed to be the age group most likely to be suffering from a “financial hangover”. Some 14 per cent of people within this demographic are still making repayments from last Christmas. Meanwhile, 11 per cent of women are paying back debts run up during 2006, in comparison to eight per cent of men.

However, with the UK payments association Apacs claiming that some 53 billion pounds is to be spent during December, those consumers who are yet to clear off previous borrowing may find that the festive season puts them under more pressure. Consequently, MoneyExpert claimed that millions of Britons could be putting themselves in extra debt in an attempt to meet the various expenses that this Christmas could entail. In turn, people still managing debts in the build-up to the festive season were urged to get their finances under control.

Sean Gardner, chief executive of MoneyExpert, said: “It is not time to cancel Christmas but for millions of us it really is time to cancel some credit cards. We can all give in to temptation at Christmas and put it on plastic but if the debt lingers from year to year you’re starting to get into trouble. Borrowing money is fine as long as you have a repayment plan.

“Unfortunately it appears millions of us do not. And with lenders getting tough that is not a good position to be in. If you’ve not cleared the debts of Christmas past it is time to face up to the future.”

One way in which consumers may be able to get to grips with their borrowing quickly is to apply for a debt consolidation loan. Speaking earlier this year, James Ketchell, spokesperson for the Consumer Credit Counselling Service, reported that Britons must keep a careful eye on their expenditure and live within their means during the festive season so as to avoid debt difficulties in the following months. Mr Ketchell claimed that although unmanageable financial problems are rarely solely caused by overspending during Christmas, the time of year can often push people “over the edge”. As a result, a consolidation loan could be an effective means by which borrowers can get out of the red.

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