Credit, Collections & Insolvency News
Two-thirds (64%) of consumers have admitted to prioritising their money management this Christmas, compared to just a quarter (25%) last year according to research by Lowell.
The research found that despite 68% of consumers feeling the pressure from social media, TV advertising, friends and family to spend big in 2023, people are planning to be more money-conscious.
In fact, two-thirds (64%) have admitted to prioritising their money management this Christmas, compared to just a quarter (25%) last year.
Last Christmas, 24% of people in the UK took six months to pay it off, however this year the majority (38%) plan to have everything paid off within a month. Lowell’s research demonstrates why and how people are planning to be more financially conscious despite ongoing pressures to spend big:
Encouragingly, the number of peopel feeling pressure to buy more than is needed over the festive period has dropped from 34% last year, to 30% in 2023, however there is undoubtedly pressure this time of year to spend, with 24% feeling that they need to deliver the perfect Christmas for their family.
Compared to 2022, 39% more people are determined to be money-savvy throughout December, with 29% having the desire to improve their personal finance resilience and wellbeing. 18% want to prioritise paying off current debt, whilst 32% are cutting back on Christmas spending due to spiralling household costs.
Last year, more than half (51%) used their savings to fund their Christmas, however in 2023, that has reduced by 5%, with more consumers opting to budget with their disposable income (57%). Encouragingly, less people are using credit cards and buy now pay later schemes this year compared to last, with a combined reduction of 6% year on year.
To be more financially conscious this Christmas, 15% are going to shop at second hand sites such as Facebook Marketplace and Vinted, 11% are going to avoid social media to prevent unnecessary spending and a third (33%) have even agreed with their family and friends to not exchange gifts at all.
John Pears, UK CEO of Lowell UK said “Sometimes the pressures of spending at Christmas can be overwhelming, however, our data is demonstrating that people in the UK are doing everything they can to budget, prioritise essential spending and celebrate the festivities within their means.”
Many social and economical factors have inspired Brits to be as money-savvy as possible this year, and it’s encouraging to see people do what they can to enjoy the festivities, without putting themselves in financial difficulty where possible.”
