Festive finance problems `can lead to psychological issues`

Overspending at Christmas time and running up debt problems can cause people to experience psychological issues, it has been suggested.

According to Dr Tom Fawcett from the University of Salford, tensions can build up in people`s minds as they wonder whether they can afford purchases, the BBC reports.

He said that over the festive season, people are torn between attempting to make themselves and those around them happy and balancing their personal finances.

The expert stated: "If people do lose control of their spending and shop in denial there can be a massive loss of confidence and self-esteem."

He added that once people wake up from their denial and realise they have been too reliant on credit or loans and have overstretched themselves, they can become "very low psychologically".

Meanwhile, figures produced recently by AXA suggested that 1.3 million UK adults have admitted that their finances are completely out of control.