As the UK braces itself for Christmas in the wake of the credit crunch, are you going to be one of the many that will be cutting back?
If you are, then you could also be one of the 18 million (39%) UK adults intending to recycle old presents that you have been given in previous years!
This represents a rise of 16% compared to 2007 according to new research by CreditExpert.co.uk.
53% of us in the UK admit to struggling more financially due to the current economic climate and because of this, 40% of us are planning to spend less this year on buying Christmas presents.
In fact, the average amount spent by Britons on Christmas presents is set to reduce by £83 from £384 last year to £301 this year.
Just over 1 in 10 of us expect to pay for this year’s festivities by trying to get a pay rise or by doing overtime.
For large numbers of us, Christmas 2008 will be a difficult time with 45% of us admitting to being very concerned about how the extra cost will affect our financial situation. The research also found that significant numbers of us may find themselves getting into debt or using our savings account or credit cards to cover this year’s Christmas costs.
CreditExpert.co.uk’s findings showed that:
- 28% of us admit we are going to celebrate Christmas as we usually do and worry about the financial consequences in the New Year
- 18% of us will be putting our Christmas purchases on our credit card
- 8% of us will be funding our spending by going overdrawn
- 23% of us will be dipping into our savings account to pay for presents
Jim Hodgkins, Managing Director, CreditExpert.co.uk, says:
“How much we spend this year on Christmas is a concern for many of us and recycling presents might seem like an attractive option. Just be careful you keep a close track of your gifts so you don’t end up in the sticky situation of the present landing back in the hands of the person originally giving it, or anyone they know!”
“Whatever you do spend this Christmas, you can improve your finances by remembering the crucial thing is to borrow responsibly. To give yourself the best chance of getting a good deal with a lender, it’s important to check your credit report to make sure you have a good credit status.”
- Working hard to finance Christmas in Wales
The Welsh are the most likely to recycle Christmas presents this year (48%), compared to those of you living in the South East (33%) and East of England (35%). The Welsh are also the most likely to finance Christmas by trying to get a pay rise or by doing overtime (20%), in comparison to just 7% of those of you in the South West of England.
In comparison, Londoners and those living in the South East are the most likely to put their purchases on their credit card (both 20%), compared to 12% in Wales and 14% in the West Midlands.
When it comes to the sexes, the ladies are planning on being more financially careful than the lads this year. Nearly half of all women (46%) are much more likely to recycle old Christmas presents than men (32%) and are also more likely to fund the season by reducing their spending on other things (27%), compared to men (18%).
- Age is significant factor
As far as the different generations go, 18-24 year olds are the most likely to recycle presents (51%). 45-54 year olds are the least likely to spend more on Christmas this year compared to last year (7%), in contrast to almost a quarter (23%) of 25-34 year olds and 16% of 35-44 year olds.
Understanding your credit report can put you in a stronger position to address your Christmas borrowing needs. CreditExpert.co.uk provides you with a summary of your credit history and alerts you to significant changes on your credit report.
So, are you going to recycle your old presents to fund Christmas this year?
If so, what are you planning to give away?
Let us know in the comments.