Funds Blog

Consumers Christmas Cost Concerns Uncovered

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As the Christmas season approaches, a significant number of Britons are worried about how they will manage their money.

It has been reported by CreditExpert that 45 per cent of people have concerns about the extra expense involved in the build-up to the festive period and the impact it will cause on their budgets. The credit file company also pointed out that four in ten Brits intend to spend less money on presents than they did in 2007, in the hope that they can manage their finances over the Christmas and new year period. Consumers intend to spend 22 per cent less this year, that’s an average spend of 301 compared to the 387 spent last year.

It may be possible that such concerns about getting a grip on spending are made even more dramatic due to the current financial climate, as some 53 per cent of people report that the credit crisis is causing them to struggle more when it comes to managing their money.

To help meet the various expenses involved in the run-up to Christmas, 23 per cent of Britons are set to raid their savings, while 12 per cent will be looking towards either doing overtime or attempting to secure a pay rise. For those looking for an effective way to borrow money in order to meet the cost of Christmas, a cheap loan may prove to be of assistance.

Meanwhile, just over a quarter of those surveyed state that they are going to celebrate this Christmas in the manner that they have always done and will only think about the financial consequences of doing so in the new year. However, it could possible that on January 1st they wake up to a financial hangover which leaves them developing problems in managing repayments on personal loans, credit cards and household bills.

A study showed that 39 per cent of people are intending to recycle old gifts, by passing on presents received in previous years to family or friends. The MD of Credit Expert, Jim Hodgkins said: “what we spend this Christmas is a concern for many and although recycling is an attractive option. Be careful you keep track, as you don’t want to end up in an awkward situation if the present lands back in the hands of the person that originally gave it you!

The most crucial thing to do, when trying to improve your finances, is to borrow sensibly over the Christmas period. It’s also beneficial for you to check your credit report, this will enable you to check your credit history and increase the chances of getting a better deal with a lender.”

Whether it is paying for presents or festive food, those looking to borrow money to meet the cost of this Christmas might want to consider getting a low-cost loan. By selecting this kind of loan, consumers may be able to meet various expenses quickly, leaving them with an affordable monthly repayment to make each month. Meanwhile, a recent study by Savebuckets revealed that just under a quarter of Britons are still repaying the debt they ran up during last years festive season.