Sharp Increase in Those Using Savings to Pay for Christmas

A recent study conducted by financial group ING direct has shown that the number of Britons using their savings to pay for Christmas has trebled compared with last year. The alarming news revealed that 32% planned to use savings compared with only 11% last year. The data also showed that the majority will be spending around £60 less on Christmas this year, with the amount being spent on gifts and going out reducing.

This latest research comes just a week after a Moneysupermaket survey showed that 7% of adults will slip into debt in order to pay for Christmas this year. The poll of nearly three thousand individuals revealed that around 69% will put the cost of gifts on their credit cards, 23% on overdrafts and 8% will take out a loan for Christmas.

A number of debt specialists have already issued help and advice to anxious consumers encouraging them to spend within their means and to be conscious of how much they spend over the festive period.
Many debt management plan firms expect to see an increase in the number of people coming to them for help in January, which is typically a busy time of year.

These recent figures could suggest that even more people may have debt problems from over spending at Christmas.

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A Morgan

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MyMoneyPig Debt

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