Almost 40% of parents rely on credit for Christmas

A recent poll by MoneyMagpie reveals that almost 40% of parents rely on credit at Christmas – despite also being more likely to save ahead of time for the festive season.

The data showed that 37% of parents rely on credit cards to spend on Christmas, while 27% of childfree people do. While it’s to be expected that families would spend more at Christmas, the research also revealed that parents are more likely to take longer to repay their credit cards afterwards into the new year.

Only 32% paid their card off immediately, compared to 63% of childfree people paying immediately.

However, it’s also worth noting how much people spend, which could impact the way people use credit cards, too. Almost 40% of parents spend over £500 at Christmas, while 81% of those without children spend up to £300 (with 17% spending under £100). This also explains why 73% of people without children don’t use a credit card to fund Christmas, as they spend less overall.

Vicky Parry, MoneyMagpie’s Editor and Financial Expert, said “It’s not surprising that parents spend more at Christmas, but relying on credit to pay for the festivities can set families on the back foot for the new year. At MoneyMagpie, we always advocate spending within your means where possible – and while that might seem tough for cash-strapped families, we have lots of tips to earn extra cash and make significant savings too.

“We encourage families concerned about the cost of Christmas to set boundaries to make it more affordable. This might be agreeing a spend limit with family and friends, or forgoing gifts for the adults altogether.”