Brits worried about funding Christmas

Over half of Brits (53 per cent) are worried about funding Christmas this year, an increase on last year when 45 per cent were worried, according to research from moneysupermarket.com. Their fears may be justified as 2010 has been extremely tough for consumers, with high inflation putting pressure on people's wallets and the Government's austerity measures set to cause further agony.

Interestingly, more women than men admit to be being worried about the cost of Christmas, with 57 per cent concerned about funding their festivities, compared to 47 per cent of men. However, women are more organised than men when it comes to Christmas shopping, with 22 per cent of females having started their Christmas shopping in order to spread the cost compared to just 13 per cent of men.

Kevin Mountford, head of banking at moneysupermarket.com says "Christmas can be financially tricky for families and the current economic climate is not making things any easier. Preparation is paramount for a successful festive season and consumers who have saved in advance will be able to start the New Year without the burden of Christmas debt hanging over them.

"Our research shows that 53 per cent of consumers are worried about the effects of Christmas on their banks accounts, this is up eight per cent from last year and reflects how tight household budgets in Britain are at the moment. Consumers with insufficient savings might want to consider a credit card that offers interest free purchases, as trying to fund the whole event through their December salary will be a bit of a stretch."

Zero per cent purchase cards can be a good way to spread the cost of Christmas provided customers are able to pay off the balance in full within the promotional period. For example, the Tesco Clubcard credit card offers a market leading 13 months at zero per cent on purchases, along with some handy benefits. However consumers should attempt to pay of the balance as quickly as possible and avoid spreading the cost over a longer term or they will still be paying for this year's festivities when Christmas 2011 rolls round.

Kevin Mountford added: "The best course of action will always be to take a ‘jam jar' approach to saving by putting aside money throughout the year in a regular savings product which can start at £20 to £25 per month. However, anyone needing to borrow money on a credit card should be thinking about applying for a new product now to ensure they have it in time for Christmas spending. As with any credit product, it's important that consumers borrowing money on a card remember the golden rules - always pay back at least the minimum each month and never borrow more than you can afford."