3rd December 2013
Nearly a quarter of Brits expect to use their credit cards to fund their Christmas lifestyle a new survey has found.
Research into the nation’s festive spending plans, reveals that on average consumers expect to fork-out £367 over the month on food, drink, presents, parties and greetings cards but 23% say they will need to borrow money on a credit or store card to pay for it according to a survey from price comparison website Gocompare.com.
The research found that 34% think that they will spend up to £200, while 29% expect to spend between £201 and £400, 22% anticipate notching up between £401 and £750 while 12% estimate they will allocate in excess of £750.
Some 58% of those surveyed said that they will meet the cost from their everyday income or savings; with 28% saying they have saved up a specific ‘Christmas fund’.
Matt Sanders, of Gocompare.com says: “If your Christmas spending plans rely on borrowing money, there are more cost effective options available, if you do your homework and shop-around. Now is the time to start planning if you think you will be unable to repay all of your Christmas debt in the New Year.
“A lot of the outstanding money owed on plastic is made up of the interest charged on outstanding payments, so a good way to reduce your post-Christmas debt is to switch credit and store card debts to a 0% balance transfer deal. These usually charge a small balance transfer fee of around 3% of the balance transferred which will initially be added to the debt but, it can be still worth doing if you can get 0% interest for 29 months.”