Spending slashed ahead of Christmas

03/12/2009

Britons are imposing sharp cutbacks on Christmas spending, with overall costs for 2009 to be 35 per cent less than those of 1999.

Saga claimed that each adult will spend £435 on festive goods and services this year, down from the inflation-adjusted £666 spent ten years ago.

A survey from the financial services firm revealed that 52 per cent were planning to use money they already had to pay for Christmas, rather than funding the spending through borrowing.

This practice could reduce debt problems for the future, with much card and loan credit carrying high APRs.

"Responding to the current economic environment, many people are spending only what they can afford," the Saga report claimed.

"Spending on family Christmas presents is set to fall - with children being affected most of all."

Saga also said that 20 per cent of people still intend to use their credit cards to help fund their festive spending.

Around 13 per cent will dip into cash savings to meet the costs.

Tags; Budgeting Advice, Young Family Finances, Credit Card Lifestyle, Recent Graduate Debt,

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