How Christmas could be stolen from the GRINCHs

‘Tis soon the season to be jolly, but a new survey issued by The Co-operative Group shows that it's warning - not sleigh - bells that will be ringing for a group it identifies as GRINCHs.

The under 35's are a Generation Recognised In Need of Credit Help (GRINCH) - feeling under pressure to borrow in order to finance Christmas and, in danger of making financial decisions now that could lead to a far from festive future.

The survey, issued by The Co-operative Electrical - part of The Co-operative Group, shows that one in three people who have yet to reach their mid-thirties feel a need to borrow in order to cover the cost of Christmas.

The Co-operative's findings also show that those aged 24-35 are more than twice as likely to have been declined a loan or overdraft and, more than half are unaware of the Annual Percentage Rate (APR) charged on their borrowings.

Around a third of 25-34 year-olds say they would turn to credit cards if a loan or overdraft request was declined. Almost one in ten would use pay-day loans, home collected credit or unauthorised doorstep lenders - where annual interest rates can exceed 270%. And yet, less than one per cent would call on their community credit union.

The Co-operative Electrical is developing a unique scheme with credit unions to offer an alternative to high interest or unauthorised lenders for families without access to mainstream credit. David Sanderson, said: "The social consequences of poor money management coupled with a lack of understanding of the true cost of borrowing can have long term implications for both individuals and communities.

"More and more people are feeling under financial pressure and put themselves at risk of paying a high price by not fully understanding the cost of finance or the alternatives available. Credit unions reach into communities and give members access to a fair, ethical and affordable alternative to the high interest lenders who prey on those financially vulnerable."

Following a successful pilot-period, the availability of The Co-operative Electrical's pioneering scheme is to be extended to all UK credit unions, giving families access to the wide-ranging products and services of one of the UK's leading online electrical retailers combined with affordable borrowing from their community credit union - a real alternative to turning to high interest lenders for those excluded from mainstream finance.