The Cost Of Christmas Concerns Consumers

November 18th, 2008

Many britons are concerned about the cost of Christmas and how they will manage.

It has been reported by CreditExpert that 45 per cent of people have concerns about the extra expense involved in the build-up to the festive period and the impact it will cause on their budgets. The credit file company also pointed out that four in ten Brits intend to spend less money on presents than they did in 2007, in the hope that they can manage their finances over the Christmas and new year period. Consumers intend to spend 22 per cent less this year, that’s an average spend of 301 compared to the 387 spent last year.

It seems to be that these concerns about getting to grips on spending, has made it more dramatic due to the current financial climate, some 53 per cent of people have found that the credit crunch is causing them to struggle more when it comes to managing their money.

23 per cent of Britons are preparing to raid their savings, while 12 per cent are hoping to get overtime or attempting to secure a pay rise to manage various expenses in the run-up to Christmas. Another solution could be to get a cheap loan, if looking for an effective way to borrow to cover the cost of Christmas.

According to a survey, just over a quarter of people said that they will celebrate this Christmas, as they always have done and will think about the financial consequences in the new year. This could cause further problems for consumers, not being able to manage their repayments on personal loans and household bills etc.

A study showed that 39 per cent of people are intending to recycle old gifts, by passing on presents received in previous years to family or friends. The MD of Credit Expert, Jim Hodgkins said: “what we spend this Christmas is a concern for many and although recycling is an attractive option. Be careful you keep track, as you don’t want to end up in an awkward situation if the present lands back in the hands of the person that originally gave it you!

The most crucial thing to do, when trying to improve your finances, is to borrow sensibly over the Christmas period. It’s also beneficial for you to check your credit report, this will enable you to check your credit history and increase the chances of getting a better deal with a lender.”

A recent study by Savebuckets showed that just under a quarter of Britons are still paying off debt from last Christmas. If looking to borrow money to cover the cost of Christmas, you may want to consider a low-cost loan to pay for presents or food. By choosing this option, consumers can meet these expenses quickly, but leave them with an affordable monthly repayment each month.

Entry Filed under: Personal Finance