Credit and debt news
Ghost of Christmas past haunts indebted Brits
14 November, 2007
As the nation approaches the final countdown to Christmas, new research rings alarm bells over the financial impact of Christmas in credit crunch Britain.
The research from the new money saving website Savebuckets.com reveals that as Brits prepare for Christmas, many are still paying off last year’s festive spending.
With 41 per cent of Britons paying for Christmas on credit last year, almost one in five are still paying for last year’s festivities, fewer than one in three having cleared their Christmas debts when their January credit card bill arrived.
Following a year of consumer confidence in 2006, Christmas spending soared 52 per cent in two years, with over one in five Brits spending over £1,000 on Christmas last year. This year, with spending power at its lowest level for 10 years, consumers are feeling the financial hangover from a more confident Christmas enjoyed on the credit card and loans.
Alarmingly, it is cash strapped youngsters and low income earners who, having spent the most on last Christmas, are most likely to be feeling the repercussions of last year’s spending spree.
The research into the financial impacts of last Christmas amongst a GB representative sample of 2,000 British adults was carried out by the new money savings website Savebuckets.com which launches this week to enable Brits to get more for their money this Christmas.
With these alarming figures in mind, Savebuckets.com will give shoppers the opportunity to save up to 20 per cent on their Christmas shopping. Putting consumers back in control of their spending, the site searches over 700 retailers for the best price on around one million products. The site includes a unique price checker which allows consumers to set the price they want to pay for items, notifying them when the price of a product falls to within their budget.
Marc Ames, Marketing Manager of Savebuckets.com, commented: “Many Britons have struggled to pay off their credit card spending from last Christmas. With rising costs of living and interest rate hikes curbing spending power this year, it is likely that many will have to make cutbacks this Christmas. Savebuckets.com launches this week as a quick and easy way to save time and money on Christmas shopping.
“The site searches over hundreds of retailers to get shoppers the best possible deal. We rate retailers on the price of their products alone, giving shoppers the opportunity to save buckets of money this Christmas and putting them back in control of their spending.”
Further Findings
Young spenders suffering the worst Christmas hangover: People aged 18 to 24 spent the most last Christmas on presents, food, travel, decorations and socialising.
Low income groups haunted by Christmas past: Lower income earners are the most likely to still be paying for last Christmas. Of the 43 per cent of people earning less than £35,000 who paid for Christmas on credit, 19 per cent are still paying for last Christmas, just 28 per cent having cleared their bills in January.
Parents shouldering the costs of Christmas: The middle generation aged 45 to 54 are the most likely to have incurred debt to cover Christmas last year. More than one in ten of this age group are still paying for last years Christmas.
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