According to James Ketchell, spokesperson for the Consumer Credit Counselling Service (CCCS), hitting the high streets in the quest for a bargain should be the last thing people do if they are aiming to get their spending under control. He suggested that in funding a trip to the January sales using a credit card, shoppers may find that their ability to manage their money comes under more pressure. This could well see people develop further fiscal difficulties at a time when homeowners may already be struggling with various spending demands, for example personal loans, household bills and overdrafts in the wake of heavy spending over the festive period.

He said: "In the new year, especially if one's had a really expensive Christmas, the first thing to do is to not go to the sales. Because there's nothing worse than having a big credit card debt and piling on another load of debt. The most important thing, really, is to set oneself a timetable for repaying any credit card or store card debt that people have gained over the Christmas period - and try to stick to that as much as possible."

In turn, he claimed that creating and sticking to a budget is a particularly important thing that people should do at this time of year. By doing so, it is possible that consumers will be able to identify which areas their money is being spent on and if there any areas in which expenditure can be reduced to allow more to put towards paying back loans and credit cards. Mr Ketchell also advised those who find that they are under particular financial strain to consider seeking guidance from an independent advisory service.

He went to claim that the number of insolvencies is set to rise over the course of 2008, as more Britons develop problems paying back loans, plastic cards and other demands on their spending. However, the CCCS representative added: "Bankruptcy seems to have a very bad stigma attached to it and people for that reason do not go through with it." Alternatively, those who are worried about their ability to manage their money may wish to consider applying for a debt consolidation loan. In taking out such a loan, it may be possible that borrowers will be able to avoid incurring the damage that their credit file would face should they file for bankruptcy, which may include limiting their access to cheap loans and other types of competitively-priced credit.

By applying for a debt consolidation loan in the first few weeks of 2008, consumers could discover that they are able to pay off numerous demands on their spending quickly and generate more disposable income. Last month, Owen Roberts, head of MyCallcredit, advised Britons to take the time to consider how they will manage various demands on their spending. He stated: "We should all take time to make sure our Christmas spending doesn't leave us with a financial hangover in the new year."