Britain’s big festive fork-out

Despite recent interest rate rises and the credit crunch, the majority of Brits will not be reducing their Christmas spending in 2007; even though almost a third (29 per cent) admits money is tighter this year, according to a study by CreditExpert.co.uk.

Nearly eight in ten (76 per cent) Brits say they will be spending the same amount or more than last year on Christmas presents and, with 2006’s average spend being £397 and over £1.2 billion worth of gifts being for people they barely know, Brits are set for a huge financial fork-out this Christmas.

The Credit at Christmas study, which questioned over 1,700 adults across Great Britain, reveals that Brits’ festive fork-out seems to be causing negative feelings about Christmas, with 40 per cent saying they resent spending money on presents for distant relatives and acquaintances and 35 per cent admitting they would like to go away at Christmas and forget all about it.

Almost one in ten (8 per cent) think their borrowing will increase in the run up to Christmas
Almost half (47 per cent) feel there is social pressure to buy impressive and costly presents
46 per cent buy presents for people who don’t give them anything in return
23 per cent recycle unwanted Christmas presents

Northerners out to impress

Those living in the North are more likely to feel pressure to buy impressive and costly presents for family, friends and partners. Seven in ten North Easterners (70 per cent) and over half (51 per cent) of North Westerners admit they feel compelled to splurge compared to 39 per cent of people in the South East and 42 per cent of Londoners.

This might explain why those in both Northern regions admit they have got into debt by over-spending at Christmas in the past, more than any other region (North East 31 per cent, North West 37 per cent).

In the South, the capital’s anticipated City bonuses have not increased the likely gift spend this year, with only 15 per cent of Londoners saying they will spend more than in 2006. People in the South East (25 per cent) are the most likely to try and reduce their spending on presents this year following 22 per cent admitting getting into debt last Christmas.

Big young spenders

Those aged 18-24 are seemingly unaffected by student loans or debt and are the most likely (22 per cent) to be spending more than last year this Christmas, compared to 14 per cent of 45-64s and 16 per cent of over 65s. The 35-44 generation is more likely than any other age group (38 per cent) to have got into debt by over-spending at Christmas.

Jim Hodgkins, Managing Director at CreditExpert.co.uk, says: ‘During the festive season, most of us spend more than normal so it’s especially important to monitor our finances and make sure our Christmas doesn’t turn into a financial nightmare.

‘Whilst giving gifts is a big part of the season, it’s easy to overspend when buying presents for family and friends and potentially fall into debt. It’s vital we budget and take a step back to ensure all our outgoings are necessary so we don’t end up being unable to make the re-payments come January – a bad credit rating can make the difference between being offered credit or not, so make sure you keep on top of your credit history and ensure you can pay back any debts before you go into the red

“If you monitor your credit status with a service such as CreditExpert, you’ll find it easier to know what you can afford and when you’re in danger of getting carried away. You can get a free 30-day trial at www.creditexpert.co.uk.”