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

Christmas spending hangover lasts beyond June

Written by:
Around a quarter (23%) of those who use credit for Christmas spending take longer than six months to repay it, according to new research by Leeds Building society.

Around one in five (18%) relied on credit to cover the cost of Christmas with the majority of those taking more than a month to repay what they’d spent, though 71% had paid it off within six months.

Plenty of people do plan ahead. Only a quarter of people in the UK who celebrate the festive season (24%) don’t save ahead for it at all. A prudent 15% start saving in January. The majority (39%) put money away from September onwards.

In terms of gifts, 2% start dropping hints as early as January, but most people wait until later in the year, with one in four (25%) starting their present campaigns in November.

This is the same time Christmas shopping peaks. Almost a third (32%) buy their presents in November; while another quarter (24%) wait until December.

Matt Bartle, Leeds Building Society’s director of products said: “It was good to see plenty of people start saving for Christmas in January. Similarly, it was positive that nearly three quarters (74%) of the people surveyed don’t take out credit to pay for Christmas. However, it was worrying that those who do use use credit can take months to pay it off, which will incur fees and could end up costing them a lot more.

“When there’s a big annual expenditure – whether that’s Christmas or a holiday – saving little and often helps to spread the cost to make it more manageable.”

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...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

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

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:
Asking rents soar as available properties dwindle

Average asking rents in London rose to an all-time high by the end of 2018 and are rising at a...