Plastic is never fantastic at Xmas
ONE in four of us will be forced to turn to credit cards to help fund Christmas.
We are expected to spend an average £660 this year, up from £538 in 2018, research reveals.
The biggest rise in spending will be on going out, which is more than double the amount spent last year at £121.30.
Just over half of people say they set themselves a budget before they start the festive shop, but more than half of them say they will blow it – by £173.
Sarah Coles, personal finance analyst at investment firm Hargreaves Lansdown, which carried out the research, said: “Christmas inflation is running at 22% this year – as the total cost of festivities hits £660.
“Unless you’ve been blessed with a huge pay rise, it either means saving more in advance, or borrowing more at the last minute.
“For one in four people it means putting at least some of the cost of Christmas on plastic.”
The research also found women will spend more on presents than men, while men will spend more on food and drink, going out and the little extras.
Parents with children living at home are the most likely to overspend, at two-thirds, compared to just over two in five of those without kids. But there are ways to avoid the plastic trap...
7 WAYS TO AVOID AN OVERSPEND THIS CHRISTMAS
1
Start by setting a realistic budget
The best way to avoid blowing the budget is to set a realistic one, and rather than simply trying to stretch one or two pay packets further, set aside savings in advance. If you save all year, putting aside £55 a month in an easy access account, paying up to 1.45% will give you over £660 to spend by Christmas.
2
Be strict with your spending
You need a strategy to use whenever you’re tempted to overspend. Never buy something the second you see it: take your time to look around and mull it over, so you’re sure you want to make a purchase. If you go ahead, work out where you can cut costs elsewhere to stay within budget.
3
Compare products before you buy
Before you buy, go online to see if another shop has the product you want at a better price. Or check if there’s a discount voucher. If you have time, leave the item in the digital shopping bag for a couple of days, and the retailer may send you a special offer.
4
Don’t go mad – slash your gift budget list
Talk to friends or family and agree not to buy presents for each other this year. You can just buy for the children, or run a Secret Santa, so you buy for one person in each group. They may relieved to cut their costs too.
5
Buy good quality pre-loved items
Younger children won’t mind if toys don’t come with endless packaging, so if you give them a good clean, they won’t spot that you’ve bought their presents from eBay or in a charity shop. Adults may particularly like antique or vintage items which can be far cheaper than brand new.
6
Resist the urge to upshift brands
Sales of premium food ranges soar at Christmas, but there’s no point paying more for posh brands or packaging when you can eat the same products you enjoy every week. Or consider the cheaper premium ranges of the budget supermarkets.
7
Stretch Christmas into the New Year
You could agree to see people in January, so you can buy in the sales from the following month’s salary – or, if you dare, take advantage of the opportunity to re-gift (just make sure you keep track of who gave you what!).
Adults may like antique or vintage items which can cost less than new