The Season of ‘Giving’ causing money worries

14/11/2011

One in five Britons will be turning to their savings in order to pay the cost of Christmas according to a study by MoneySupermarket.com.

The research by the price comparison website revealed that only a third of those questioned had enough money to pay for the extra cost associated with the Christmas season. Only 38 per cent of Britons can afford to pay for the festivities using their disposable income whilst 4 per cent are planning to use their overdraft, a move which could tip them further into debt.

Furthermore, it seems that the pressure of Christmas giving may push one in ten people into possible debt s they turn to credit or store cards in order to fund presents for their loved ones.

Kevin Mountford, head of banking at MoneySupermarket, said: “Yule tide can be an expensive time of year and those planning to use their disposable income or their savings to fund their Christmas spending may find they get swept up in the festivities and spend more than planned.

“The golden rule of festive spending is to know how much you have available and then stick to your budget, or you could be left in the cold paying off Christmas well into the New Year.”

Despite many being worried about funding their Christmas, it seems that 8 per cent of those questioned have planned for Christmas in advance by paying money into a regular saving scheme and now have a ready sum of money saved for Christmas spending.

Tags; Current UK Economy, Housing Debt and Bills, Income Worries and Debt,

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