Christmas is a favourite holiday in the UK, with Brits spending up to a huge £2,500 over the Christmas period. But how much of this is spent due to pressure, and how do we actually pay for our Christmas?
Debt management company Lowell has taken a deep dive into Brit’s average spending at Christmas, looking at the biggest money pressures, and how Brits funded their festivities last year compared to 2020.
The research revealed that the average Brit gets into £439 of debt at Christmas, and then needs four months to recover.
Brits’ biggest money pressures at Christmas
As well as the pressures to overspend, the research also highlighted that people felt pushed to buy large, expensive items (14%), as well as feeling an expectation to keep up with social media’s up-and-coming trends (10%).
Brits’ biggest money pressures
|Brits Money Pressures||% of Brits|
|Buying more than needed/overspending||22%|
|Pressure to buy large expensive items||14%|
|Buying more premium brands||13%|
|Social media pressure to keep up with trends||10%|
Over one in six Brits Depended on Credit this Christmas
Christmas can be daunting for many Brits and finding those extra funds isn’t always easy. Following 2020’s lockdown Christmas, Lowell has compared how Brits funded the recent festivities compared to 2020.
Although fewer Brits (17% in 2021 compared to 26% in 2020) relied on credit cards, there was an increase in the use of other tools. Partly because savings are less likely to fund less of the purchases. Payment schemes such as ‘Buy Now, Pay Later’ saw an increase of 39% in 2021.
|Funding Christmas||% of Brits 2021||% of Brits 2020|
|Christmas Pre Purchase Schemes (Monthly pay Christmas catalogues)||10%||7%|
It was expected almost one in 10 Brits (9%) relied on their overdraft to fund Christmas.
John Pears, UK CEO of Debt Management company Lowell comments:
“At Lowell, we would never want to see any of our customers getting deeper into debt over Christmas pressures. We would always encourage consumers to really think carefully before turning to credit or other short-term options that could have an impact on your financial health if not properly managed at a later point.
‘Now that the festive season has come to an end, creating a realistic budget of what you could afford to get you to your next payday is essential. There are online tools available to help you get started and using these to plan ahead will help you to avoid accidental overspending.
‘It’s also important to know that there are many credible, impartial and trustworthy sources to support anybody struggling financially, and a helpful list is available at our website https://www.lowell.co.uk/help-and-support/independent-support/.”