You are here: Home - Credit Cards & Loans - News -

Brits spend over £1bn on Valentine’s Day gifts

0
Written by:
14/02/2019
Brits will spend over £1bn on Valentine’s Day, according to GlobalData research - a new record.

Valentine’s spending has increased by 0.5% since last year and has rocketed in recent years. However FairMoney argues that this spending may be going on credit as the country struggles to pay its bills.

It showed that 18% of Brits have debts valued at over £2,000. Around one-fifth need an extra £100 a month just to keep up with their bills and repayments – for 6%, that rises to more than £500. In aggregate, Brits need an extra £3.8bn to cover their normal monthly expenditures 

Dr Roger Gewolb, executive chairman and founder of FairMoney, said: “Brits are in a whirlwind of debt and this is only exacerbated further by retailers luring in consumers with Valentine’s Day deals. With such pressure from retailers, it’s not surprising that consumers turn to payday lenders and credit cards to battle the financial burden. Short term finance is bleeding us dry and millions of people are being pushed to extortion at the hands of high-interest credit options – one of the biggest atrocities to affect UK society.”

The Financial Conduct Authority’s (FCA) recently announced that more than 5.4 million loans were taken out in the year to 30 June 2018. At the same time, high cost short-term credit is also accelerating, though price caps are helping to keep borrowing costs lower. Nevertheless, these people pay an average of 1.65x the original amount borrowed.

Gillian Guy, chief executive of Citizens Advice, said at the time that many of these products were taken out by those with little choice but to borrow to meet the cost of essentials, often leaving them heavily in debt after taking out small loans.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Council tax to rise this year

The majority of local councils plan to raise council tax and increase charging this year to make up for cuts...

Close