Around a quarter of 16 to 44-year-olds are worried about escalating debts and 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 them are more likely to go on a diet or book a holiday than try to sort out their debt 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 show the general public is "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.

Do you understand how much your debts are really costing you? Credit cards, overdrafts, loans, store cards etc may offer short term respite, but only increase the burden of long term debt. Always make sure wherever possible that you can maintain more than more just your minimum repayment, or you will be paying dear with massive amounts of interest.

For debt help and advice, call our FREEPHONE number and speak to one of our professional debt counselors to see how we can help reduce your debt liability. 0800 933 6666