A LEGAL firm is warning consumers against panic buying using credit cards this Christmas.

Insolvency solicitors at East Lancashire law firm, Farleys, are reacting to recent instability in financial markets worldwide and are urging consumers to spend within their means to reduce the risk of unmanageable debt.

Mark Skinner, insolvency solicitor and debt advisor at Farley's Solicitors Burnley office, said: "Spending on plastic is always tempting around the Christmas period, but this should be avoided as at some point the debt will need to be paid back.

"Predictions show that UK housing repossession rates are set to rise by 50 per cent in 2008 and many people could find themselves among this figure if they take on unmanageable amounts of unsecured credit this Christmas."