Many people are still trying to recover from overspending during Christmastime, which is why one savings provider is urging people to start saving money now to fund this year's festivities.
Bradford & Bingley says the average Briton spent some £330 on presents last Christmas, while a typical household shelled out £920 for their celebrations.
These findings led the bank to launch a new Christmas Saver savings account which is designed to help people minimise the stress of repaying their debt following the festive "shopping frenzy".
Available for a limited period only, the savings account will pay a savings rate of eight per cent annual equivalent rate.
An initial deposit of £10 is needed to open the savings account and those saving money in the Christmas Saver savings account can keep a balance of up to £1,500 in it.
No withdrawals are allowed until the savings account matures on December 1st 2006, when the interest will be credited to the savings account.
Choosing to "spend now, pay later" can be costly, says Bradford & Bingley's head of savings, Steve Potter.
He explains that a credit card holder with Christmas shopping debt of £900 will take 64 months to repay this if they only repay the minimum five per cent a month.
With a typical annual percentage rate of 16 per cent, the credit card holder will pay £288.74 in interest, Mr Potter illustrates.
"This is a false economy," he warns, adding that a regular savings plan "could take much unneeded stress out of Christmas".
Bank launches savings account for Christmas 2006
Bank launches savings account for Christmas 2006
Tue, 07 Feb 2006
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