Cash Preferred Over Credit Card for Xmas Spend
Brits intend on reining in Christmas spending this year as a new survey shows fewer people are relying on their credit card.
The top way people are paying for Christmas gifts and other festive expenses is with cash, accounting for 82 percent of means of purchasing.
This was followed by 58 percent who intend on using money from a savings account, building society or bank, and 38 percent a credit card, Legal & General’s MoneyMood Survey revealed.
If you are worried paying for presents on a credit card will leave you with an unaffordable bill next year try using a prepaid credit card instead.
“Perhaps, as a nation, we are improving our ability to manage the ‘spend now and pay later’ culture,” said Mark Gregory, Legal & General Executive Director Savings.
“It’s encouraging to see our MoneyMood survey reflecting a more prudent attitude to credit card debt in these straightened times.”
The survey showed 51 percent are planning to keep a budget this year with the average spend on festive items amounting to £301 per household, while four out of five say they plan to limit it to £500.
A further eight out of 10 expect their expenditure to be no more than last year with 30 percent even planning to spend less.
Last year, the survey revealed in February 2009 one-fifth were saving to pay off credit card debt in the aftermath of Christmas.
Compare Prepaid Credit Cards
If you are paying for Christmas presents with cash to prevent you overspending on a credit card try loading your budgeted amount onto a prepaid money card UK.
This will save you from carrying around a large amount of cash, it is protected from fraud and if it is stolen you can cancel the card to protect your money.
Furthermore, the card does not allow you to spend more than you loaded onto it so it is impossible to spend more than you can afford.