A North Devon debt counselling charity has warned that personal bank balances in the region could sink to their lowest annual level.

Christians Against Poverty (CAP) said today could be the worst day of the year for personal finances as, fuelled by the recession, it is traditionally the busiest day for credit card bills laden with Christmas debt.

In an attempt to help consumers keep their cool when feeling the heat from money problems, the Barnstaple debt organisation has launched a ‘Cash Only Day’ initiative to encourage people to leave credit cards at home and use cash instead.

Jeremy Westcott, Barnstaple CAP centre manager said: “It's a proven way to rein in spending and help us feel more in control of our finances.”

A nation in debt

Today, the charity released statistics from a government survey which revealed that more than half of UK adults (54) felt they did not have the right tools to handle their finances.

The money education study, which polled more than 2,000 UK adults, showed how women were more likely to feel they hadn’t been properly prepared to handle their accounts. 58% stated they hadn’t received adequate financial education, compared with 47% of men.

The survey also revealed that the younger generation were the least prepared to cope with the financial crisis gripping the country. 59% of under – 35s said they did not feel they had received enough financial understanding, compared to 46% of over 55s.

However, Mr Westcott said while many people are struggling to manage their finances it’s not all doom and gloom:

“Through our CAP Centre, we have seen people turn around their financial situations, finding control where before there was chaos, receiving the sound financial principles that so many crave.

Undoubtedly, it's a difficult time for everyone as the recession continues to gather pace, but we want to reassure people that there is hope and a solution to whatever financial situation they are facing.”

Westcott continued: “Through our Barnstaple centre, local people in debt are able to access CAP's award-winning, free service. If you're really struggling after Christmas and you're not sure about how your finances will stretch, please give us a call. We work with anyone, regardless of their beliefs, so please get in contact.”

Meanwhile, another survey has shown that 177,000 people have estimated that paying off their festive fending spree will take more than a year.

Four per cent expect to take between four and six months while two per cent estimate it will take between seven and 12 months.

Donald MacLeod said: “A year is a particularly long time to still be paying for festive debt so if you think it's going to take you a while its worth taking stock and coming up with a plan for managing it.”