Christmas shopping to leave Brits with four months of debt
The average Brit gets into £439 of debt over the Christmas period, which can take four months to recover from.
According to debt management company Lowell, more than a fifth (22 per cent) of British consumers are feeling pressure to spend beyond their means this Christmas, and those who are shopping for the holidays are spending almost £740 more than they would in any other month.
14 per cent of people feel pushed to buy large, expensive items, 13 per cent are buying more premium brands and 10 per cent feel like they have the expectation to keep up with social media trends.
More Brits are using loans and pre-purchase schemes such as buy-now, pay-later (BNPL) to spend for Christmas this year than in 2020, while fewer are using savings, credit cards and disposable income.
Payment schemes such as BNPL have seen a 39 per cent rise in 2021, and 10 per cent of consumers are using Christmas pre-purchase schemes – up from seven per cent last year. Six per cent are using personal loans, a rise from five per cent in 2020.
This year, it’s expected almost one in 10 Brits (nine per cent) will rely on their overdraft to fund Christmas. Over a third (39 per cent) are using savings and 35 per cent are using their disposable income.
Only 17 per cent of shoppers plan to use credit cards this year, a fall from 26 per cent in 2020.