Christmas credit hangover
Easter might be just around the corner but according to latest research from Halifax, one in five people (20%) aged between 18 and 44 are still paying for last Christmas.
The Halifax findings show that 14% of people are still paying for Christmas either on a credit card, through their overdraft or via a loan. However, fewer of the older generation are in the red because of the festivities, with the number still paying to Christmas falling to 9% of those over the age of 45.
Whilst only 9% of people in Scotland are still paying for Christmas, this grows to 21% in the North East.
Christmas 2013 arrives before Christmas 2011 is paid for
Credit cards are the most popular way for people to fund Christmas on credit, with nearly 1 in 10 (9%) people still managing festive spending on their card balance. 4% of people say that they are in their overdraft because of Christmas excess, and a further 3% are repaying a loan that they took to help their Christmas spending.
9% of those still paying for last year's festive season say that they will still be paying their 2011 Christmas bill into 2013. Although 18% expect to be free of Christmas debt by June 2012, 8% say that they will have settled their bills by next month.
Anthony Warrington, head of current accounts, Halifax, said: "We all face unforeseen costs from time to time, but Christmas shouldn't be one of them. If it's December before you think about how to pay for it, it's too late. Christmas is an expensive time of year as it is, but not budgeting for it well in advance can cost you more in the long run."
Gifts top the spending list
Those in the North of England spent the most on Christmas last year. At £530, this is £28 above the UK average of £502. Whilst 9% of people put their entire Christmas spending on their credit card, 51% of people didn't use a credit card at all. On average, just under a third (29%) of Christmas budgets were paid for on a credit card.
The significant majority (91%) of credit card users paid for gifts on their card, followed by festive food expenses (61%) and entertainment (28%). Just over a fifth (22%) paid for travel on their credit card over Christmas.
2012 Spending plans
Despite the reliance on credit in 2011, just 19% of people are already planning on how they pay for Christmas in 2012. 28% of people, although planning to save for Christmas 2012 at some point, have not yet started to think about it, and 47% of people say that they do not plan to save for Christmas 2012 at all.