Sainsbury's Bank loans finds Christmas hangovers still going strong

Credit card holders will still be paying off their Christmas loans beyond January, Sainsbury's Bank has found.

Research from Sainsbury's Bank suggests that one person in five claims they will not be able to clear their festive season bills this month.

Some 168,000 people estimate it will take them longer than one year to do this, resulting in much higher interest payments than the corresponding amount taken out on a secured personal loan.

Sainsbury's Bank also found that consolidation loans are becoming a more popular choice amongst people who are trying to manage their debt, with data showing that £5.4 billion of new consolidation loans will be taken out in the next three months.

The bank found that one in three of the 550,000 personal loans taken out over this period will be aimed at managing the debt that built up over the Christmas.