New research from MoneySuperMarket shows consumer are likely to spend even more generously than last year, when those who celebrate Christmas predicted they’d pay out around £383 per person.

The highest spending revelers will be aged 35-54, spending £451 per person, while those aged 55 and over plan to pay out £406. The total amount spent on Christmas falls to £323 for 18 to 34 year olds.

Those in the North East plan to spend as much as £548 this festive season, whereas those living on the other side of the country in the South West intend to spend £324 each.

This increased generosity comes at a price, with 30 per cent of those celebrating Christmas stating they will have to borrow money to cover the cost.

Almost a quarter (23 per cent) will use a credit card to pay for presents, food and other festive costs, and eight per cent will dip into their overdraft. Four per cent will need to borrow money from their family or friends, and three per cent will require a loan. However, the overall majority has managed their budget accordingly and many will be affording Christmas through money they’ve stashed away. A third (33 per cent) will rely on their savings, while 29 per cent will use money they’ve been putting aside especially to pay for the festive season.

Festive financial hangovers

Unfortunately, a number of people are still feeling the financial effects from last Christmas.

Over a quarter (28 per cent) spent more on Christmas last year than they had put aside, and as a result, one in seven (15 per cent) went into debt.

Kevin Mountford, banking expert at MoneySuperMarket said: “Our research shows that consumer Christmas spending is set to rise this year. It’s a time of year that’s important to many of us, but we would love to see families managing their money in a way that doesn’t leave a debt hangover into the New Year.

“Whilst planning your Christmas shopping, take some time to also plan how you are going to pay for it all. By working out the best way to spend you can end up saving a substantial amount of money, which will make your Christmas merrier!”

[article_related_posts]