The holidays are a special time when we can all come together and enjoy each other’s company. It’s a time for peace and love and for making cherished memories with our loved ones.
Christmas Debt is a big problem. But it doesn’t have to be. This article will help you understand how to tackle this debt before it gets out of control.
Christmas can be a time of great joy, giving, and spending time with loved ones. However, it can also be a time of financial pressure and stress. With the added costs of presents, Christmas dinners, and decorations, the holiday season can quickly become expensive and overwhelming.
What is the real cost of Christmas?
Christmas is a time when many people overspend and get into debt. This can be a real struggle, especially around the holidays. At Christmas Pressure, our mission is to help people avoid overspending and getting into debt.
Many people go into debt during the holidays because of Christmas expenses. It can take a long time to pay off this debt and be very stressful. Our research shows that holiday debt is a major problem for many people.
Based on our survey, we found that:
- Most people in Britain get into debt during Christmas, spending an average of £439.
- The average person needs four months to get their finances back on track after the holiday season. This can be a difficult and daunting task.
As Christmas approaches, our spending habits change. We typically spend around 29% more in December than we do in a typical month. This is due to the increased costs of gifts, food, and travel during the holiday season. The Bank of England found that the average UK household spends just over £2,500 per month. However, in December, this figure rises to almost £740.
Christmas Debt Pressures
One of the reasons why people overspend during Christmas is because of the pressure to have a perfect holiday. Advertisements, TV shows, and magazines all show images of happy families with lavish gifts. This creates social pressure to ‘keep up’ with others and have an extravagant Christmas. However, this can lead to financial strain and stress instead of enjoyment.
This holiday season, don’t let the pressure of buying gifts ruin your finances. Remember that spending time with your loved ones is more important than giving them material things. Enjoy a stress-free Christmas by setting a budget and sticking to it. Your loved ones will appreciate your thoughtfulness more than anything money can buy.
This can be a tough time of year for many people. With the pressure to buy presents and food, 22% of people feel they have to spend more than they can afford.
As the holidays approach, many families begin to feel the pressure of making everything perfect. Supermarkets add to this pressure by promoting Christmas dinners complete with all the trimmings as the key to a magical holiday. This can lead some families to over-buy or go overboard on luxury items that they would not normally purchase. The truth is:
- When shopping for Christmas presents and food, 13% of Brits feel pressured to purchase premium brands.
- More than one in five Brits feel pressured to spend more than they can afford when shopping (21%).
- 14% of Brits feel pressured to purchase expensive items
- As people shop for Christmas, 10% say they feel pressured by social media to keep up with trends.
Christmas is a special time of year, and it can be difficult to resist spending money when the media encourages us. However, there are ways to make Christmas special without spending much money.
Christmas is a time for giving, and it’s important to remember that not everyone can afford to spend much money on gifts. Overspending can lead to financial difficulties – depending on how you’re funding Christmas debt – so it’s important to be mindful of your spending.
How Brits fund Christmas
Although Christmas can be expensive, many Brits find ways to fund the holiday besides their November wages. There are various options available to those who want to make sure they can celebrate Christmas without breaking the bank.
Christmas can be a difficult time of year for many people. With the pressure to spend money on presents, food, and drink, some people turn to credit-based options and build up debt. Just over a third of Brits (35%) said they fund Christmas through disposable income, but for others, it’s not so simple. 39% dip into savings, and some end up putting Christmas on credit.
Based on our survey, we found that:
- Credit cards are used by almost one in five Brits (17%) to fund Christmas
- Furthermore, 11% of consumers will use a ‘Buy Now, Pay Later option.
- The remaining 10% is raised through pre-purchase schemes (such as pay-monthly catalogs)
- To pay for Christmas, 9% dipped into an overdraft facility
Credit can be tempting, but remember that missing payments can impact your credit score. Try to stay on top of your repayments to avoid any negative consequences.
Many people use these methods because they have very little disposable income and find it hard to save or create a budget they can stick to.
The true meaning of Christmas
The most important thing to remember is that Christmas is only one day. Even though this is a special day, spending quality time with your loved ones is far more important than spending lots of money on Christmas presents or elaborate decorations.
There is no reason for your loved ones to want you to face additional debts or financial hardship in the new year.