Taking out a loan in the run-up to Christmas can be useful, as long as it is for the right purpose, it has been suggested.

Steven Baillie, head of loans at Sainsbury's Bank, claims that loans may be a good option to cover the cost of large items during the festive period.

His comments follow figures from MoneyExpert which reveal that more than a million bills went unpaid in January 2007 as Britons tackled their overstretched finances.

Secured loans could be one means of providing extra funds in the run-up to Christmas by unlocking some of the capital held in property.

And Mr Baillie advises that loans may prove to be the best option for Britons rather than adding to high-interest credit card balances.

"It really depends on what you're buying for Christmas - if you're buying that car for Christmas then I can understand it," he observes.

The spokesperson adds that many people succeed in paying back their festive expenditure within the first few months of the following year.ADNFCR-1287-ID-18346830-ADNFCR

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