Financial pressures are mounting on the UK’s cash-strapped consumers still struggling to pay off last Christmas’s spending splurge. Indeed, 9.1 million struggled financially after last Christmas’s extravagances with a further 5.4 million having to resort to digging deep into their overdraft facility and an additional 3.8 million being plunged into severe debt, according to new research from Nationwide.
Despite having festive funding fears, 38% don’t budget for their Christmas spend while 36% of those who do, exceed their budget every year. We typically spend on average £314 on friends and family but that is before all the hidden extra costs-£21 on average spent on decorations, £17 on cards, and £15 on crackers. We spend another £116 on average buying gifts for colleagues and on office parties.
This year 19% of us are set to put the cost of splashing out on Christmas cheer on our credit cards. Approximately 38% will use the funds in our current accounts, while 33% will dip into savings and 19% will use December’s paycheck.
Aston spoke to Alexis Conran, TV presenter, actor and broadcaster to discuss the findings of the research, how to best budget for all the festivities and keep safe online this Christmas.