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Poorer families face grim Christmas

Updated on 30 November 2009

Source PA News

Parents will have to cut back on Christmas presents and fall into debt to make ends meet this winter, a charity has warned.

A survey by Save the Children revealed almost two-thirds (65%) of families with a household income of less than £30,000 believed they would struggle financially.

More than half (52%) planned to turn to high interest payment options such as store cards, catalogues and doorstep lenders to cover costs, while 56% said they would buy fewer gifts for their children.

Almost a fifth (19%) believed it would take more than a year to pay back the money, the survey showed.

According to the poll, 32% of families said their greatest worry was that they would struggle to pay it back.

Those living in poverty - earning less than £12,000 - painted a bleaker picture with almost 80% saying they would struggle to get by this winter and 55% planning to borrow money from high interest lenders.

The majority of those on the lowest incomes (63%) said they would buy fewer Christmas presents for their children this year.

The charity is calling for the Government to introduce new rules that would oblige high street banks to invest money in providing affordable loans to families who are excluded from mainstream credit.

Fergus Drake, Save the Children's UK director, said: "It is shocking that so many families have to borrow money to pay for day-to-day essentials such as heating and food. For some families even borrowing alone isn't enough, with many parents forced to cut back on Christmas presents as well as winter clothes."

These news feeds are provided by an independent third party and Channel 4 is not responsible or liable to you for the same.

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