Almost a quarter of Brits will have to go into debt to fund their Christmas shopping this year as the cost of living bites, a new survey has revealed.
The Cost of Christmas survey of over 2,000 people, by personal insolvency provider, Creditfix, revealed what their spending habits will look like this Christmas.
When asked if they’ll be using any of the below methods to pay for the festive season, Creditfix found:
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15.3% will be using Buy Now Pay Later services.
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7.7% will be using their credit card.
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2.4% will be using store cards.
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4.8% will be using their overdraft.
A fifth (20%) state it will take them at least three months to pay off their debt this Christmas – with 4.4% expecting to still be paying off Christmas 2023 in December 2024.
Cautious shoppers also plan to spend less on gifts, with 17% cutting back on presents for pals, 14% spending less on their partner and 15% spending less on their parents and siblings. What’s more, 9% will be less generous on items for their cousins and grandparents.
The survey also found that many have yet to start saving for the festive season, with three-quarters (76%) stating that they’ll start saving in either October, November or December. This comes as Google searches for ‘how to save for Christmas’ have risen by 27% in the last year.
Maxine McCreadie, personal finance expert at Creditfix, said:
“Our survey highlights that, as bills and food prices hit new highs this year, people across the country are cutting back across the board this Christmas, whether that’s on gifts, social activities, or food spending consumed.
“Overdrafts, credit cards and Buy Now Pay Later services can lead you to spend impulsively. If you’re struggling with rising costs and you’re worried about falling into debt, you’re not alone. You can get in touch with personal insolvency services to discuss any options available to you and take back control over debt.
“If you’re concerned about how far your finances will stretch this festive season, don’t be afraid to set expectations with friends and family. Remember, spending time with your nearest and dearest shouldn’t come with an obligation to spend a fortune. If your budget only stretches to small gifts for immediate family or you need to swap a day out at the Christmas markets for a walk around your local area to see the lights with a friend, that’s okay. Your time is the most important gift you could give.”
