Credit cards required to pay for Christmas
A brand new study reveals that British consumers are already concerned about potential Christmas spending, and predict that Brits might have to rely on credit cards to afford the coming holiday season.
Even if the Christmas holidays are still a few months away, 60% of British consumers are already worrying about the extra spending that it represents and a third of them are planning to make severe cutbacks.
Recent research from a leading comparison site reveals that general Christmas costs have risen by 15% since 2009 and that, because of this, 55% of UK consumers suggested their Christmas holiday will be much tighter this year.
Indeed, the abrupt increase in the cost of living, the latest energy price hikes and the current squeeze on their bank accounts means British families are being hit particularly hard this Christmas.
Credit cards to afford the expenses
Furthermore, the report suggests that families failing to save any money for the holiday season will increase the use of credit cards or even loans.
"For those with insufficient savings, a credit card offering interest free purchases could offer some much needed flexibility,” said Kevin Mountford, head of banking at MoneySupermarket.
An additional study published by Standard Life, entitled ‘Your Commitments, Your Future’, recently revealed that the average British consumer spends up to £3,804 per year on repaying their credit cards - or £317 every month.
This means that Brits would spend over £152,160 on credit card payments alone over a 40 year period during their lifetime.
Overall, making monthly credit card payments is the most common action with 51% doing it every month. 44% of UK adults make monthly payments into savings and ISAs, and one in five is currently paying off a loan (21%).
Comparing credit card conditions, as well as other financial products, could be a good way of saving money for this Christmas.