Cash strapped consumers putting Christmas on hold

Over a quarter or Brits (26%) could wake up to nothing under the Christmas tree this year as families and loved ones resort to giving IOUs to save money, according to new research from uSwitch.com, the independent price comparison and switching service.

Almost four in ten (39%) of those resorting to IOUs are doing so because they can't afford presents this year. A quarter (26%) can't afford them at all, while one in ten (12%) giving an IOU are doing so because they can't afford presents unless they're in the sale. A further 5% of people are waiting for their next pay day before splashing out on gifts.

However, it's not just about juggling the family finances - almost a fifth (17%) of those giving an IOU are doing so because they think that they would be able to afford a bigger and better gift in the sales.

Although an IOU may not be top of the Christmas wish list, consumers believe they will save an average of £40 by delaying buying gifts until the January sales. And with one in ten (10%) people estimating that they could have been over £100 better off if they'd waited to buy their presents in the sale last year, putting Christmas on hold could make all the difference.

But as well as struggling with the cost, people are also fed-up of seeing their Christmas purchases reduced in the sales just a few days after buying them. Nearly nine in ten (88%) have seen gifts they have bought go in the sale and nearly three quarters (72%) are angered when this happens.

In fact, it is so frustrating that almost three in ten (29%) of those considering giving an IOU are doing so mainly because they're fed-up of it happening to them. And with almost a fifth (17%) saying they don't want to bother buying presents full price again when they see their purchases reduced, Christmas could be on hold every year for some Brits.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "Many of us will be feeling the pinch this Christmas. But on top of the financial burden, we're fed-up of seeing the gifts that we have struggled to afford going into the bargain bucket just a few days after Christmas when the sales begin.

"In the eternal quest for a bargain, savvy consumers are choosing to put the gift buying on hold until they can take advantage of the sales. While this may keep our bank managers happy, some of us may be concerned that our loved ones could be less than impressed. However, in these difficult times, most people would not want to see their families and loved ones under financial pressure simply to provide them with a gift for Christmas day."