Increasing numbers putting Christmas on credit, says research

More than a third of adults are putting Christmas on credit, according to a charity.

Around 37% are putting Christmas costs on that form of payment, according to new research from National Debtline, run by charity the Money Advice Trust (MAT).

The findings suggest more people are turning to credit this year, compared to 33% last year.

They were released as a separate report, from StepChange Debt Charity, said more than two million people in the UK are stuck in a cycle of persistent overdraft debt.

The report, based on a survey of StepChange’s clients and analysis of Financial Conduct Authority (FCA) data, found 2.1 million people in the UK used their overdraft every month in 2016.

StepChange said while overdrafts are meant to be short-term, they can trap people in expensive and long-term cycles of persistent debt.

Meanwhile, the MAT’s report found that while 37% of people are putting Christmas presents on credit, 24% are putting Christmas food on it too, an increase from 22% last year.

Around one in seven (14%) people say they worry about money every day in the run-up to Christmas, the latest survey of more than 2,000 people found.

National Debtline has launched a social media campaign called peaceofmind, supported by consumer help website MoneySavingExpert.com, to encourage people to seek support online to help ease their money worries.

Its research found 3% of people say they lose sleep in the run-up to Christmas because of money worries and nearly one in 10 (9%) people surveyed say their concerns have a negative impact on their enjoyment of Christmas.

Joanna Elson, chief executive of the MAT, said: “Money worries can affect people at any time of the year, but with the pressure to spend even greater at Christmas, this can cause even more stress.”

Martin Lewis, founder of MoneySavingExpert.com, said: “Too many people feel pressured into making a lust list of what makes the perfect Christmas. Cut your cloth accordingly.”