This represents an increase of 16 per cent compared to 2007 according to new research by CreditExpert.co.uk.
More than half (53 per cent) of UK adults admit to struggling more financially due to the current economic climate. 40 per cent are planning to spend less this year on Christmas presents. In fact, the average amount spent by Britons on Christmas presents is set to reduce by £83 (22 per cent), from £384 last year to £301 this year. Just over one in ten (12 per cent) people expect to pay for this year's festivities by trying to get a pay rise or by doing overtime.
For many, this Christmas will be a difficult time with nearly half (45 per cent) admitting to being very concerned about how the extra expense will affect their financial situation. The research also found that a significant number of adults may find themselves getting into debt or using their savings account to cover this year's Christmas costs:
28 per cent admit they are going to celebrate Christmas as they usually do and think about the financial consequences in the New Year
Nearly one in five (18 per cent) will be putting their Christmas purchases on their credit card
8 per cent will be funding their spending by going overdrawn
Almost a quarter (23 per cent) will be dipping into their savings account to pay for presents
Jim Hodgkins, Managing Director, CreditExpert.co.uk, says: "How much we spend this year on Christmas is a concern for many of us and recycling presents might seem like an attractive option. Just be careful you keep a close track of your gifts so you don't end up in the sticky situation of the present landing back in the hands of the person originally giving it - or anyone they know! Whatever you do spend this Christmas, you can improve your finances by remembering the crucial thing is to borrow responsibly. To give yourself the best chance of getting a good deal with a lender, it's important to check your credit report to make sure you have a good credit status."
Working hard to finance Christmas in Wales
The Welsh are the most likely to recycle Christmas presents this year (48 per cent), compared to those living in the South East (33 per cent) and East of England (35 per cent). The Welsh are also the most likely to finance Christmas by trying to get a pay rise or by doing overtime (20 per cent), in comparison to just 7 per cent of those people in the South West of England.
In comparison, Londoners and those living in the South East are the most likely to put their purchases on their credit card (both 20 per cent), compared to 12 per cent in Wales and 14 per cent in the West Midlands.
Frugal festive females
When it comes to the sexes, women are planning on being more financially careful than men this year. Nearly half of all women (46 per cent) are much more likely to recycle old Christmas presents than men (32 per cent) and are also more likely to fund the season by reducing their spending on other things (27 per cent), compared to men (18 per cent).
Age is significant factor
As far as the different generations go, 18-24 year olds are the most likely to recycle presents (51 per cent). 45-54 year olds are the least likely to spend more on Christmas this year compared to last year (7 per cent), in contrast to almost a quarter (23 per cent) of 25-34 year olds and 16 per cent of 35-44 year olds.
Understanding your credit report can put you in a stronger position to address your Christmas borrowing needs. CreditExpert.co.uk provides you with a summary of your credit history and alerts you to significant changes on your credit report.
