MOMENTS of madness in the run-up to Christmas could lead to New Year debt misery, an insolvency expert is warning.

Alan Haden, of Bromsgrove-based Haden Insolvency, said a Christmas credit card overdose could make for months of despair and a real potential for bankruptcy.

"The British are infatuated with their credit cards and it would seem that, as a nation, we are falling ever deeper into debt," he said.

"Recent Bank of England figures show the total amount borrowed by UK customers, excluding mortgages, has doubled since 1995."

Competition

He blamed competition between credit card companies for interest rate cuts which made borrowing more attractive.

And he hit out at junk mail and aggressive advertising, which he claimed encouraged spending.

"With the long Christmas shut-down, businesses can be vulnerable to a New Year of financial crisis unless the right accounting strategies are put into place early," Mr Haden said.

"There are those who take heart in celebrating the opportunity to delay payments for goods and services leaving a business with the potential for serious cash flow problems.

"A bit of forethought will ensure everyone has a happy Christmas and prosperous New Year."