RSS Feed

Related Articles

Related Categories

Brits set to spend over £17 billion on Christmas cheer

19th November 2014 Print

With Christmas fast approaching and the number of shopping days dwindling, research from MoneySuperMarket predicts festive expenditure is set to exceed £17 billion with Brits splashing out an average of £383 per person this year. 

The comparison site found that spend for those who celebrate Christmas will be highest amongst 35-54 year olds at £418 per person. The total falls to £339 for those aged 55 and over, and £397 for those aged 18 to 34. Those in the North East are set to spend the most with an average of £471 per person, followed by the Welsh at £415. Shoppers in Yorkshire and Humber are expecting to spend the least, shelling out an average of £318 each.

However, almost a third (31 per cent) of those celebrating Christmas this year will have to borrow money to foot the festive costs. A quarter (25 per cent) will use their credit card to pay for presents, food and other festive costs, while nine per cent will dip into their overdraft. A further seven per cent will use a loan, and six per cent will borrow money from their family or friends. In addition, a savvy third of people (33 per cent) will use money they’ve been putting aside especially for the festive season to pay for Christmas, while 34 per cent will be relying on their savings.

Red Christmas

Worryingly, a number of people are still in the red from Christmas last year. Those who are still in debt owe £183 on average. Two fifths (40 per cent) who still owe money from last year are between £201 and £250 in debt, and a further 13 per cent owe more than £251.

Moreover, over a fifth (22 per cent) of those who are able to estimate their Christmas spend this year, believe that they will splash more cash this yuletide compared to last year. This rises to two fifths (39 per cent) of 18 to 34 year olds, while just 12 per cent of those aged 55 and over expect to increase their festive spending. Of those who are still in debt from last Christmas, two-thirds (65 per cent) think they will spend more than they did last year.

Kevin Mountford, head of banking at MoneySuperMarket said: For most households, Christmas is often the time of the year when we are the most generous with our cash whether it is buying gifts for friends and relatives, or funding the traditional Christmas meal with all the trimmings. With only one pay day left for many people until Christmas, it is important to take steps now to manage your finances in the run up to the big day – and beyond.

“If you need to borrow money to fund the shortfall, then a credit card offering interest free purchases could be a good option for those looking for flexibility and an efficient way to spread the cost of Christmas. However, anyone taking up this option must ensure they are able to pay off the debt into the New Year or risk being hit by heavy interest charges when the interest free period expires. Alternatively, acashback card may be a good option for those looking to be rewarded for their Christmas spend – as long as you can clear the deficit at the end of the month. If you cannot afford to pay off any Christmas debts in the New Year, then look to do so as soon as possible as you don’t want to be paying for this year’s festivities by the time Christmas 2015 comes along.

“As with shopping for gifts, it’s equally as important to shop around and take some time working out the best way for you to pay for your Christmas. By using an online comparison site, you’ll be able to see where the best deals can be had, and ensure that this Christmas is a cracker.”