Consolidation on the cards for Christmas spenders

As the New Year arrives, many people may be nursing more than a New Year’s Day hangover as the reality of Christmas spending and splurging on Boxing Day sales sinks in.

Research from AA Financial Services shows that Christmas shoppers spent an average of £503.15 over the festive period. Nine per cent admitted to spending more than £1000.

Although ‘spare cash in bank account’ was the most popular way to pay for things over Christmas (67%), shoppers also commonly paid for Christmas expenses with credit cards which more than half (51%) used. The research shows that less than a third (29%) topped up their Christmas spending with savings.

Mark Huggins, Director of AA Financial Services said: “Putting Christmas on credit is a popular strategy to make your money go a bit further.

“But it’s easy to get a bit carried away and spend more than you intended to. For many, the Christmas spending hangover can mean that making ends meet is difficult in January.

“A balance transfer could be a good option to consider for those that want to consolidate Christmas spending along with other expenses. With careful budgeting it’s possible that a 0% balance transfer may be cheaper than paying back existing debts the cardholder has.”

The AA’s 28 month Balance Transfer Card offers members and non members 0% for up to 28 months from the date the account is opened on balance transfers made in the first 60 days. Balance transfer handling fee of 2.9% (minimum of £3) applies. Representative example 18.9% p.a (variable) on card purchases. Equivalent to 18.9% APR representative (variable). Based on a credit limit of £1,200.