One in five `relied on debt for Christmas spending`

Online banking provider IE has found that one fifth of Christmas shoppers got into debt to fund their festive spending in 2010 and are now unable to repay what they owe, The Telegraph reports.

Overall, more than half of adults admit they are in debt, the report adds, with a third overdrawn or carrying credit card debt.

Younger people are most likely to be in debt, with 75% of the 18-24 age group owing money to creditors. Within that group, almost 40% do not have a budget or a repayment plan for their debts.

James Richards, director at IE, commented: "It`s important that all of us get into good habits when it comes to monitoring our spending and keeping a close eye on our money. […] Burying your head in the sand is the worst thing you can do - it`s not too late to set a New Year`s resolution to get a grip on your finances in 2011."

An expert at debt management company Gregory Pennington said: "A lot of people who got into debt over Christmas will have found it much more difficult than they anticipated to keep up with their debts. It`s important that they address this problem as soon as possible.

"Many will find that a reassessment of their budgets and a few cutbacks can help them make enough room for their repayments. But those who feel out of their depth should not hesitate to speak with an expert."