Many of us are stuck in the midst of a Christmas shopping frenzy – bar those organised few who finished the festive shop back in November – but just how much do you think you'll end up spending? Are you sticking to a budget, or blowing it? And just how are you paying for the whole thing? According to various pieces of research, we could end up spending more than we bargained for…
According to research from Peachy.co.uk, 31% of consumers – the highest proportion of respondents – plan to spend over £1,500 this year, with 27% expecting to spend between £1,001 and £1,250. A further 20% are anticipating expenditure of £1,251-£1,500, while 14% plan to spend between £751 and £1,000 and 5% expect to spend £501-£750. Indeed, only 2% say they'll be spending £250 or less, while a mere 1% of those surveyed have got a budget of between £251 and £500.
This shows just how much many of us are planning to spend this year, but it may not be that easy to cover that kind of expense. In fact, 11% of respondents admit that they'll need to get a second job to fund their festive spend, while 22% said that they'd end up missing bill payments, and 65% said that they'll probably end up in debt in an attempt to cover the costs.
Additional figures from Ferratum Group have revealed that disposable incomes could get a battering, with UK households set to spend 38.5% of their disposable income during the festive period. Hopefully, this could mean that many households will be reliant on their wages rather than credit to cover the cost, but others will undoubtedly be forced to turn to the plastic.
If you must, make sure you do it wisely, ideally by using a 0% purchase credit card, which will allow you to spread the cost without interest adding to your financial worries in the New Year. Alternatively, if you're confident in being able to pay the balance off in full in January, you may like to use a cashback credit card to get a little something back from your festive spend, but this should only be considered if you really can pay off the balance in full.
And, if you want to stand the best possible chance of preserving both your disposable income and credit rating in the year ahead, start planning now for Christmas 2016! Putting aside some money each month into a dedicated savings account can ensure next year's festive spend will be easier to cover, leaving you with a stress-free Christmas and a debt-free New Year.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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