It’s the most wonderful time of the year – or is it? As the cost of living bites, many consumers will be opting for a thriftier Christmas this year, according to our new survey.
While December can often be described as joyful and a time for giving, the reality can often be very different for people who are looking for ways to slash costs to make sure their families can enjoy the festive season as best as possible.
Creditfix surveyed over 2,000 adults to reveal what their spending habits will look like this Christmas. We found that many will be cutting back on gifts and socialising due to the rising cost of living.
Has the cost of living crisis stolen Christmas?
Creditfix’s survey found that 67% of people are stressed about spending money this Christmas – with a whopping 80% saying that they’re planning to seek out cheaper brands or shops to purchase gifts this year.
Our survey also found that almost one in six (14%) will be spending less on presents for their children, siblings and their spouse or partner this year, in a sign that many are scaling back as they feel the extra strain on their finances.
For friends, it’s often a “do I or don’t I?” decision when it comes to gifting at Christmas, and for many this year, the answer is a firm “don’t”, with 17% of people claiming that they’ll be spending less on presents for their pals.
It can be hard to get into the Christmas spirit and find presents for those in your life when you’re feeling the pinch, which is why it’s worth speaking to your family and friends early on. Consider a Secret Santa if you have a large friendship group instead of buying for every individual person, or get busy in the kitchen and make gingerbread cookies or brownies to spread Christmas cheer in a more cost-effective way.
Buy Now, Stress Later
Almost one in four (23%) state that they’ll either be using credit cards or Buy Now Pay Later (BNPL) services to fund their Christmas shopping this year. In the festive season, people often feel pressured to spend beyond their means, which can easily spiral into problem debt.
Worryingly, a fifth (20%) of people will take at least three months to pay off their bills for Christmas, with some expecting to still be paying off Christmas 2023 in December 2024.
Tackling credit card debt can be overwhelming and daunting, especially if you’re unsure of where to start to begin clearing your debts. An IVA could help you to pay off your debts with a monthly repayment plan that suits your financial situation and circumstances.
It’s important to make a list of things you definitely need to purchase this Christmas, and be strict with your budget, to avoid overspending. Even being tempted to buy things that are on sale, if you didn’t budget for them, is impulsive spending and can lead to debt.
A more sober affair
Christmas 2023 is likely to see many spend less on celebratory drinks and socialising, to avoid eating too much into their festive finances.
At least a fifth of people stated that they’ll be spending less on attending events or purchasing new outfits for social gatherings this year, as Christmas often means attending all the events, whether that’s the work Christmas do, friend-mas, or attending various Christmas markets and parties. Festive fun comes at a cost, and to avoid a financial hangover in January, more people are cutting down.
18% will be spending less on alcohol than they usually would, despite the weeks leading up to Christmas often being some of the most booze-heavy in the UK, as people are encouraged to drink to celebrate the season.
And as grocery prices hit new highs, 14% will be slashing how much they spend on Christmas dinner.
Brits are finding it harder to save for the season
Over three-quarters of respondents (76.3%) reported that they’ll start saving for this year’s Christmas in either October, November or December. This could lead people to go over their predicted budget in the run-up to Christmas in order to afford their festive plans.
Searches for ‘how to save for Christmas’ have risen by 27% on Google in the last 12 months, and it’s worth exploring any offers, vouchers or other money-saving tips to help reduce your chances of being skint before your January payday. MoneySavingExpert has a handy guide, including ideas for sub £5 gift ideas, and how to find hidden gems.
Ultimately, Christmas is just one day a year, however, the weeks beforehand and up to New Year can bring a lot of pressure to spend. But it’s highly likely your friends and family would much rather prefer you to be financially less stressed than overly generous.
If you’re struggling with the pressure of spending this Christmas, and are worried about falling into debt, you’re not alone. Get in touch with the team at Creditfix where we can discuss the options available to take back control over your debt.
Why choose Creditfix?
- Write off unsecured debts over £6,000
- Stop interest and charges soaring
- Reduced payments from £110 per month
Methodology
We surveyed over 2,000 adults across the UK to find out their spending predictions for Christmas 2023. Some questions were multiple choice.
