Christmas shoppers warned about 'buy now, pay later' schemes 

Higher prices were the main reasons for increased spending on gifts, food and decorations. Picture: iStock

Irish consumers will spend an average of €1,200 on Christmas shopping this year, a 20% jump on last year as rising inflation results in widespread price increases.

New research from Ireland's consumer protection watchdog has found that more than two-thirds of consumers plan to use their savings to fund Christmas expenses such as presents, food and decorations with one in four planning to borrow money.

The Competition & Consumer Protection Commission (CCPC) is also warning consumers to avoid increasingly popular 'buy now, pay later' credit schemes offered on many websites.

According to a survey conducted by the CCPC, 73% of consumers cited higher prices as the reason for increased spending this year. 

'Making Christmas extra special this year' was also a key reason for 42% of shoppers, while 29% cited an increase in income as a reason to spend more. 

The 35-44 age group intend to spend the most over the festive season with an average of almost €1,500. Picture: Leah Farrell/RollingNews.ie

One in five said they have more savings to put towards Christmas this year compared to last year.

More than one-third of shoppers will spend an average of at least €1,000, while households with children are due to spend almost €1,600. The 35-44 age group intend to spend the most over the festive season with an average of almost €1,500.

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While one in four plan to use credit to fund their Christmas the survey has found a sharp drop in those planning to use their credit card, one of the most expensive forms of credit.

CCPC Director of Communications Grainne Griffin said: "We are also very glad to see that Irish consumers are not planning on using 'buy now, pay later options to fund Christmas. 

"While 'buy now, pay later' credit can be tempting and seem convenient, it can add up quickly leaving consumers swamped with hefty repayments."

"Our advice to consumers is make a list of expenses and set a realistic budget setting out how much you can afford to spend. 

"For consumers who plan to use credit, the CCPC online money tools can help consumers compare rates for personal loans and other financial products," she said.