Eight million Brits expect to borrow money to fund Christmas

Eight million adults in the UK (16%) expect to have to borrow money to pay for Christmas this year, according to new research from budgeting account provider thinkmoney.
 
thinkmoney asked people how they intend to pay for the festivities and other costs that the season brings - like presents, food and drink, entertainment and going out. Whilst 16% of us think we'll need to borrow this year, this is actually down on the 18% who borrowed last Christmas.
 
Of those that borrowed money last Christmas - £654 on average - almost half (46%) are still paying it off. 28% expect to have cleared last year’s Christmas debt before the big day this year, but 18% don’t expect to.
 
People aged 35-44 are the most likely to expect to borrow to pay for Christmas (24%, compared with the average of 16%), followed by 25-34 year-olds (20%) and 18-24s (19%). People over 65 are the least likely to borrow for Christmas, with just 4% expecting to do so.
 
It seems men are less likely than women to borrow for Christmas - but when they do, they're likely to borrow almost twice as much. On average, women borrowed £547 last year, compared with an even £1,000 for men. Average borrowing varied widely by region, with those in the West Midlands borrowing the most last year at £1,114 - more than double the Welsh average of £510.
 
Ian Williams from thinkmoney said: "Whilst Christmas is the highlight of the year for many, it can be a worrying time for those who struggle to find the money to cover the food, drink, entertaining and presents that are now traditional.
 
"Being organised about your finances can make managing a big event like Christmas a lot easier. Budgeting to set a little money aside throughout the year can help prevent the need to borrow money for Christmas. If you do need to borrow, a good budget can also help you identify how much you can realistically afford to pay off each month - to ensure the Christmas debt hangover doesn’t linger too long.”