For so many of us, Christmas really feels like something we've earned - something we've worked hard to afford and a time when we celebrate 'making it' to the end of another year!
However, celebrating it with too much gusto can mean we get the New Year off to a bad start, as we struggle to repay our credit card debts and get back out of our overdraft. Some new figures indicate that almost a third of us will end up running up debts over the Christmas period.
Provided by Intelligent Environments, the research claims that a full 31% of the UK will get into debt in the festive season. Over half of that group will spend more than they typically would on their credit cards, while two out of every five will end up in their overdraft. To read more about the different ways of managing debt click here, or carry on reading this article.
New Year - time to sort things out
When the New Year rolls around, it can come with a nasty shock, as we open our bills and find out exactly how much we 'put on the plastic' over the holidays.
For some, it's no big problem. Anyone who can repay their entire credit card balance within a month won't pay any interest at all on the debt.
For some, it might mean a month or so of cutting back. After all, those minimum payments are only a minimum - and plenty of people are prepared to do without luxuries for a while if it lets them clear that debt as quickly as possible, so they're not paying any more interest than necessary.
For others, though, the expenses of Christmas can be the 'final straw' that leaves them in a situation where they simply can't afford their monthly outgoings anymore.
When they can't afford their debt payments, they can end up facing legal action by their lenders, damage to their credit rating, fines and extra interest charges (since they're repaying the debt more slowly, giving it more time to grow).
But they might be able to avoid some of that if they enter a debt management plan (a new agreement with their unsecured lenders).
If their lenders agree to lower payments, the individual's credit rating might be damaged anyway, but a debt management plan could still be the best way for them to repay their debt at a rate they can afford - lenders will often agree to freeze interest and waive charges while someone's on a debt management plan, although they don't have to. If they do, the debt won't grow while it's being repaid, but if they don't, repaying it more slowly will cost more.