A quarter of people quizzed confessed they will be using credit cards for their Crimbo splurges. And money Xmas hangovers are set to drag into next year with only 22% of shoppers expecting to have cleared their festive bills by the end of December
One in seven Brits has confessed they are putting Christmas on credit.
Some 14% are resorting to buy now, pay later schemes to help bankroll festivities this year, research discovered.
A quarter of people surveyed admitted they will be relying on credit cards for their Christmas spending sprees.
And financial Christmas hangovers are set to linger into next year with only 22% of shoppers anticipating they’ll have settled their festive bills by the end of December.
Vix Leyton, consumer expert at banking app thinkmoney, which conducted the survey, warned some people could risk “turning festive fun into a debt time bomb that will echo well into 2026”, reports the Daily Star.
She continued: “Before putting Christmas on credit, it’s worth weighing up exactly what’s important to you and what’s just noise.
“For the essentials, planning early is key to create the biggest run up and bag the best bargains, and remember that Christmas is about celebrating with the people you love, not how much you spend.”
Vix has recommended creating gift lists and budgets, establishing a gifting “price cap” with friends and family and steering clear of panic-buying by starting early.
Hard-up shoppers have also been encouraged to prepare for major sales events such as Black Friday to save money and maintain online wish lists and price alerts.
The poll also revealed 7% of shoppers anticipate borrowing from family and friends to help finance their Christmas.
More than half of adults questioned acknowledged they will use their regular income whilst 42% will tap into savings. Nearly half of those surveyed said they find buy now, pay later (BNPL) attractive as a way to spread the cost, with this figure rising to 73% among 25 to 34 year olds.
This comes in the wake of last week’s announcement by UK Finance industry body that BNPL services, which allow shoppers to split payments without paying interest, are on the rise.
One in four adults are now using them, up from 14%.
However, concerns have been raised about some BNPL borrowers overstretching themselves and being hit with charges for loans they cannot afford to pay back on time.
In July, the Financial Conduct Authority watchdog launched an investigation into BNPL, proposing rules to give consumers more transparency over what this type of borrowing involves.