Christmas is a Credit Time Bomb waiting to Explode

04 December 2007

The hype of Christmas, relentless demands from the kids and the desire to keep up with the Joneses create a credit time bomb waiting to explode over the festive season, warns a Kent debt recovery specialist.

Martin Kingman, debt recovery manager at leading south east law firm Furley Page, said: “With Christmas less than a month away the temptation is to use credit cards and overdrafts to fund the most expensive day of the year but this is a short-sighted way to finance your family’s commitments.

“It may sound obvious but make sure you keep a strict audit on all your incomings and outgoings unless you want to become a casualty of the ‘cheap credit for all' party.”

Borrowing money is more popular now than it has ever been, regardless of whether people have the means to pay it back or not, adds Martin. Between April and October this year the two official receivers offices in Kent – at Medway and Canterbury – dealt with 1,393 individuals who were declared bankrupt and a further 108 companies who went into liquidation.

“This is almost certain to show an increase in the final few months of the current financial year,” he warns.

Martin draws a parallel between the recent problems in the US financial markets caused by sub-prime lending and the situation in the UK where proper financial checks and formal procedures are disregarded by some unscrupulous lenders.

For further information on personal bankruptcy, corporate insolvency, debt recovery or international enforcement of judgements contact  Martin Kingman

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