Christmas cracker could be tough going this year
BRITONS are looking to have Christmas on the cheap this year but it will not be easy as it will still cost an average £576 per household.
Two in five say they will spend less than they did last year, while one in six will put some of the cost on a credit card, and 8 per cent will use buy now, pay later lending.
Even a cut-price Christmas could prove ruinously expensive this year, said Sarah Coles, senior personal finance analyst at Hargreaves Lansdown: “Despite going to even more extreme money-saving lengths than usual, we’re still set to spend a fortune. Parents will fork out most of all, spending £772 on average.”
One in eight have no idea how much they will spend. “They will just cross their fingers and hit the shops. With money so tight, this is a recipe for disaster,” Coles said.
Worryingly, 1.7 million people are borrowing from high-cost lenders in order to pay off existing debts, according to research from responsible lender Creditspring.
Chief executive Neil Kadagathur said the rising cost of living has forced millions of people into a corner and they have no choice but to borrow from several lenders to survive: “This situation can rapidly spiral out of control and put households under unimaginable financial pressure.”
The average Briton is worse off by £342 a month this winter and just a small increase in the cost of essentials will take many to breaking point, according to separate research from LifeSearch.
Half fear they will have to use up the majority of their savings, as a third struggle to pay for food and childcare.
If in serious debt, speak to charities such as Citizens Advice, StepChange or National Debtline.