Families borrow £654 for Christmas celebrations

Paul BeareFounder, Paul Beare Ltd

Eight million adults – 16 per cent of the UK population – expect they will have to borrow money to pay for Christmas this year, research from Thinkmoney has found.

The number is in fact down from 18 per cent who borrowed last year to afford presents, food, drink and entertainment over the festive period.The research also found that:

  • adults borrowed an average of £654 last Christmas
  • nearly half (46 per cent) of those that borrowed are yet to pay off last year’s debts
  • 18 per cent of these expect they will not be able to pay their debts back before this year’s celebrations
  • people between 35-44 years of age are the most likely to borrow to pay for Christmas – 24 per cent compared to the average of 16 per cent.

Thinkmoney’s director of communications, Ian Williams, said Christmas can be a worrying time financially for many people in the UK.

“Whilst Christmas is the highlight of the year for many, it can be a worrying time for those who struggle to find the money to cover the food, drink, entertaining and presents that are now traditional.”

“Being organised about your finances can make managing a big event like Christmas a lot easier. Budgeting to set a little money aside throughout the year can help prevent the need to borrow money for Christmas. If you do need to borrow, a good budget can also help you identify how much you can realistically afford to pay off each month – to ensure the Christmas debt hangover doesn’t linger too long.”

We can help you to budget and plan financially for the future.


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