LONDON - Consumers are too scared to open post-Christmas bills, a survey by the financial watchdog has found.
Around a quarter of 16 to 44-year-olds are worried about bills arriving on their doormats in the New Year, according to the Financial Services Authority (FSA).
Its poll of 2,454 adults also found that 48 percent of people are more likely to go on a diet or book a holiday than try to sort out their finances in January (13 percent).
Almost 60 percent of people admitted they either did not know what Christmas was going to cost them or spent more than they had budgeted, and 23 percent used loans or credit cards to finance the festivities.
Chris Pond, director of financial capability at the FSA, warned of the potentially "devastating" consequences of poor money management.
"Sorting out your budget isn't the most interesting thing you will do after Christmas, but it could be the most important," he said.
"If you don't make payments on time it can affect your credit history and at worst put your home and even relationships under pressure."
A financial education charity, the ifs School of Finance, said the figures showed that the general public were "largely incapable of managing their finances effectively".
Anne Kiem, its director of external affairs, called for the government to ensure all schools offer a stand-alone qualification in personal finance.
The FSA has published a free "Money made Clear" guide, which offers tips on budgeting, savings and claiming benefits. The watchdog has a Web site at www.moneymadeclear.fsa.gov.uk and a consumer helpline.
