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

Christmas cutbacks for 14 million consumers

0
Written by:
10/11/2015
Nearly 14 million Brits will put Christmas spending on a credit card this year, and 60 per cent will cut back on spending to make the period affordable, according to uSwitch.com research.

The price comparison and switching site’s study found families plan to spend £600 on Christmas, with one in ten splashing out more than £1,000.

To cover the cost, 34 per cent will put presents on plastic (with 21 per cent using their card to buy the turkey), and 29 per cent will borrow money.

Nine million consumers still hold debt from last Christmas, and overall credit card debt stands at £62.7bn, its highest since 2006.

Despite these findings, a mere 26 per cent of those using plastic to fund Christmas will use a cashback credit card, meaning the majority could miss out on valuable perks. Furthermore, just 15 per cent will use a 0 per cent purchase card, which allows consumers to defer repayment for up to 27 months. More than a third (35 per cent) will rely on a standard card, without any special offers or features.

The findings show that 15 per cent of consumers will spend beyond their means this Christmas. However, 60 per cent will look to make some cutbacks to help curb costs over the festive period.

Tashema Jackson, money expert at uSwitch.com, said: “Consumers are under enormous amounts of pressure to spend at this time of year, despite many knowing they can’t afford it.

“As well as cutting back where possible during the festive season, there are things consumers can do to help manage their money better. Savvy shoppers who can clear their balance in full each month can take advantage of a cashback credit card and make a little back with every purchase.

“Those unable to clear their balance can benefit from some breathing space by putting their presents on one of the many 0 per cent purchase cards on the market. Balance transfer cards are offering the longest ever interest-free periods, which could provide some welcome relief with the financial juggling.”

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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:
Stock market turmoil drives investors to buy to let

Stock market volatility is fuelling confidence in the UK’s buy-to-let market, with fears about under performance in China and the...

Close