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

Brits will not clear Christmas debt until summer 2020

Written by: Paloma Kubiak
It will take the average Brit seven months to pay off their Christmas debt as struggling families turn to credit to finance the day.

Seven in 10 people said they won’t be able to comfortably afford Christmas, but families who bow to pressure to spend will turn to credit to pay for it.

Nearly a third said they would borrow money to cover the festive period and a quarter of these said they intended to use a ‘buy now, pay later’ scheme.

The research from debt charity StepChange reveals that younger people – those aged 16-34 – are more likely to turn to buy now pay later deals (25%), putting them at risk of problem debt.

Those who do borrow money to buy presents and food for Christmas admitted that it will take an average of seven and a half months to pay back the debts.

A third of the 1,533 people polled said they will have to cut their spending to afford Christmas, such as fewer takeaways, nights out and even on food shopping.

The data comes as StepChange launches its ‘The Real Cost of Christmas’ campaign, highlighting the potential long-term impact of credit taken out over the festive season.

Richard Lane, director of external affairs at StepChange, said: “Celebrating the festive season is fun but getting into debt for it isn’t. Retailers and credit providers must not encourage over-borrowing at the expense of people’s long-term financial health.

“If it’s going to take many months to repay what you borrow to pay for Christmas, it’s worth pausing for a moment to think about whether your friends and family would really want you to suffer financially as a result of your generosity. Most people would much prefer their loved ones to have a financially happy new year than a swanky present.

“If you’re already in debt, don’t let the pressure or expectation that Christmas can put on you make you feel you have to spend. Free, confidential debt advice from reputable charities can help you.”

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

  • RT @WeareJust_PR: Many people struggling to make ends meet may not realise they are entitled to financial help or find the system too confu…
  • Many people struggling to make ends meet may not realise they are entitled to financial help or find the system too…
  • There's only a few more days to go until #furlough ends and the #JobSupportScheme comes into force. I have explored…

Read previous post:
Consumers tighten their purse strings ahead of Christmas

Spending remained muted in November as political uncertainty continued to weigh on consumer confidence.