A British household expects to spend £753 on Christmas festivities this year. Collectively that’s a staggering £21 billion splashed out on presents, food and drink, parties and decorations.
We what spend it on
Presents for friends and families top the list of Christmas spending with an anticipated average outlay of £378 per household, followed by food and drink (£183) and, partying (£109). On average, householders estimate they will also spend £83 on buying a Christmas tree and festive decorations, pantos and other Christmas experiences.
How we pay for it
The research by GoCompare also found that just over half (52 per cent) of people will pay for Christmas celebrations from their current account, while 26 per cent have put money aside throughout the year to cover their cost of their festive spending. However, 12 per cent say they will use a credit card to cover some of the cost with 3 per cent using a credit card to pay for all their seasonal spending.
26% have put money aside to cover Christmas
Of those who plan on borrowing money or using a credit card to finance their festivities, 60 per cent said they plan on paying off their debt within a month, while the average time to repay Christmas credit card spending was 2.4 months. A small percentage (8 per cent) anticipated that it would take them over six months to repay their spending.
Matt Sanders at Gocompare said, "Credit cards can be an attractive option this time of year, allowing people to spread the cost of Christmas as well as offering protection on some purchases under the Consumer Credit Act.
"At the moment there are a range of cards offering 0% interest periods on purchases and balance transfers for customers to take advantage of, with some cards offering as much as two years' interest free on purchase and up to 40 month' interest free on balances transfers respectively.
“However, if you are putting Christmas spending on a credit card, bear to remember that you’ll be required to pay back the full amount borrow, plus any additional interest, meaning it's important to be realistic with how much you can afford," Matt adds.
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