Credit, Collections & Insolvency News
New research from Go.Compare has found that financial worries are affecting how consumers are planning for the festive holiday, with over a third (35%) saying they’ve made the tough decision to cut their Christmas budget this year.
The research found that 37% admitted they will have to be very careful with money this year. A further 35% stated they plan to spend less than in previous years, while 8% of people are taking the decision to spend money they don’t have in order to fund travel, gifts and other festive expenses. Additionally, 1 in 6 people (15%) stated that Christmas will be financially very difficult for them this year.
The research also revealed that on average, Christmas expenditure will be a third lower this year, with people planning to spend £434 on average – down 34% from last year, when those surveyed revealed they would spend £658 on average.
Matt Sanders, Go.Compare Money Spokesperson, said “Our annual Christmas spending survey has revealed that many Brits are really feeling the pinch – which, with continued rises to the cost of living, won’t come as a surprise to many.
“While Christmas is a really joyful time it can also cause a lot of stress, as families face the cost of buying presents, travelling to see loved ones, and stocking up on festive food. Our research has found that a third of people are looking at a lower budget for the holiday this year – but worryingly, 8% plan to spend money they don’t have, which could cause mounting bills in the new year.
“Our data suggests financial pressure is also going to affect festive spending significantly, with the amount that people are planning to spend on Christmas having fallen significantly. This year the average festive spend is £434 – down from £658 last year.”