Consumers Coming Under Christmas Costs Crunch
Christmas may be less than two months away, but the financial burden of 2007s festivities continues to weigh down upon households, it has been reported.
In research carried out by Savebuckets it was revealed that a significant number of consumers are still repaying debts they ran up in order to meet the cost of the previous Christmas period. According to the price comparison site, just under a quarter (24 per cent) of consumers are still finding themselves making repayments on the debts they built up in the run-up to last Christmas. Such a figure represents an increase of 29 per cent from those who found themselves facing the financial ghost of Christmas Past in 2007.
Overall, Savebuckets reported that just under two-fifths (39 per cent) of Britons racked up some form of debt in order to pay for last Christmas. However, of these consumers only 29 per cent were able to get themselves out of the red and back into the black by the following January.
Research from the firm also indicated that consumers on low incomes are the most likely to still be dealing with the cost of last Christmas. Around a third (34 per cent) of such consumers are currently making repayments for seasonal spending in 2007, while some 23 per cent were shown to have completed making repayments on these debts by the end of January.
It could be possible that areas of seasonal spending people have to contend with include meeting the cost of decorations and gifts.
By still finding themselves struggling with last years debts, the impact of meeting the cost of this Christmas may mean that consumers develop greater difficulties in getting to grips with various financial commitments. This could include areas such as repayments on personal loans, store and credit cards, utility bills and mortgage repayments.
Overall, those in their 30s were shown to be having the most difficulty when handling cash over Christmas. Some 47 per cent of such consumers were shown to have borrowed money for last years festivities, with about a third of these still making repayments. Savebuckets also points out people in this age demographic are most likely to have a family. People in the north of Britain were also indicated as having a propensity to go into the red when it comes to Christmas. Some 39 per cent of residents in the north of England were revealed to have ran up debts to meet spending commitments last year, with 33 per cent of Scottish residents also doing this.
However, as the credit crisis continues to make its presence felt the firm suggests that even more consumers may be set to develop problems in managing their money.
Commenting on the report, James Wenger, marketing manager at Savebuckets, said: “We have been looking at how the credit crunch is affecting Brits spending habits for the last year and the new research shows that the credit crunch already started taking its toll on UK finances last Christmas and throughout 2008. With a rising number of Brits still paying for last Christmas it raises alarm bells over how the pattern will continue next year into 2009 as the economic turmoil continues. We would like to encourage Brits to be savvy shoppers this Christmas – it is amazing how much you can save on the same products if you check elsewhere for a better price.”
For those consumers worried about how they will manage meeting the various costs that this Christmas will entail, applying for a personal loan could prove to be of assistance. By getting this kind of loan, borrowers may find that they can pay for the likes of presents, decorations and seasonal food quickly. In addition, a quick loan could help with completing repayments on any debts ran up since last year. This could prove to be of assistance after a recent study by National Savings and Investments revealed that an increasing number of parents are choosing to take on second jobs or are working longer hours in order to make sure that their children do not miss out on anything while growing up.
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