Pictured: Matthew Hammond

Over one in seven (15%) people across the Midlands have already borrowed money to pay for Christmas, higher than every other region in the UK, according to a recent survey by insolvency trade body R3. Individuals aged between 16 and 24 have borrowed more money than any other age group, with around one fifth (18%) already in Christmas debt, compared to only 4% of over 65s.

R3 Midlands chairman Matthew Hammond, a partner at PwC in the Midlands, said: "It's worrying to see so many people taking on greater debt at a time when the economic outlook is so uncertain. Of particular concern are the actions of the younger generation, who appear to be developing bad money management habits.  

"Whilst comparisons with previous R3 research show that fewer people across the UK have borrowed money than at this point last year, there are still some weeks until Christmas. With rising unemployment figures, we can only expect to see more people struggling to afford the demands of the festive season."

The R3 survey also found that 16% of Midlands respondents said they did not think they would have enough money after Christmas to afford to pay the bills they receive at the end of December. Around a third said it would take them one month or more to pay back Christmas debts.

Matthew Hammond continued: "The recent pick-up in retail sales indicates that people have started their Christmas shopping early this year. Given the ever increasing cost of living, particularly the hike in energy prices, spreading the cost of Christmas is sensible. 

"However, there are still huge numbers of people who will struggle with December's expenses and may well look to short-term loans and credit cards for financial help. They should be wary of the high interest rates that often accompany these products."