According to the Legal Services Commission (LSC), the weeks immediately following the previous festive season witnessed a rise in the levels of Britons struggling to get to grips with the various constraints on their spending. Meanwhile, research from the government-backed institution indicated that the numbers of people with problems in handling their finances could rise this year, as consumers have already spent some 564 pounds on yuletide food, drink and decorations.



This, the commission claims, will see a number of last-minute Britons "turn out in force" as they look to buy all their gifts in the run-up to December 25th. In turn, this could see such people come under strain when managing the likes of personal loans, credit card statements and household bills in the new year. For those looking to reduce pressure on their finances as the festive period rapidly approaches, however, applying for a debt consolidation loan could be a good idea.

Meanwhile, the LSC received some 195 calls from people in Warrington looking for advice on management in January this year - a rise from the 98 recorded in the preceding month. In turn, this could well suggest that those from the Cheshire town are developing problems in making payments on loans, store cards, utility bills and other areas of financial demand.

John Binks, spokesperson for the north-west branch of LSC, told thisischeshire: "Christmas debt can mean a choice between not eating or having the power cut off when the January bills arrive. Our debt helpline sees a huge spike in callers suffering from unmanageable debt in January."

The LSC was launched in 2004 and offers a free legal aid service providing advice via the internet and over the phone on areas such as employment, education, benefits, tax credits and managing debt whether this is through loans or other sources of financial demand. Earlier this month, it received its one millionth call from a person looking for guidance.

Since its opening, the commission's north-west branch has seen staff numbers increase from five to a current figure of 68. "Any family needs to budget for expensive times like Christmas but for families who will feel the pinch it is essential to get the right advice now," Mr Binks also reported.

People concerned that they will be unable to manage their money may wish to consider applying for a debt consolidation loan. In doing so, borrowers could be able to merge numerous demands on their spending into a single low-rate monthly repayment and so free up disposable income.

Taking out a consolidation loan could be particularly advisable for a number of young Britons, after a recent survey by Rainer indicated that a fifth of people between the ages of 18 and 24 are currently, or at some point in the past have been, more than 10,000 pounds in the red.

Meanwhile, some 20 per cent of people in this age group have no more than 50 pounds at the end of each month after paying for food and other essentials after servicing their debts. For such Britons, a cheap consolidation loan could prove to be of particular help.