Consumers must be "savvy" to avoid debts and arrears

In order to avoid getting into debt problems and entering into arrears on loan repayments, consumers must be "savvy" over the festive season, a charity has said.

According to Citizens Advice, there has been a year-on-year increase of 35 per cent in mortgage and secured loan arrears problems.

The organisation advised consumers not to forgo their mortgage repayments in favour of purchasing gifts for friends and family.

"Christmas is a time of giving, but you don`t want to give yourself a headache in the New Year with bills and debts you can`t afford," stated John Rhodes, head of financial capability at Citizens Advice.

Along with Barclaycard, the charity has drawn up a list of tips to avoid a "financial headache", including planning early for Christmas and avoiding overdrafts as a means of payment.

Recently, financial expert and TV presenter Jasmine Birtles said that spending too much during the festive season can create "misery" among consumers.