€410 the average debt, €590 the average spend for Christmas

Half of shoppers expect to borrow money to get through the festive season, with €410 the average debt, a survey for credit unions has revealed.

The study also found consumers will spend €590, with parents splashing out an average of €185 on presents per child this Christmas, up €15 from last year.

The report for the Irish League of Credit Unions revealed the biggest spenders are in the three border counties and men will outspend women by €15.

However, it warned its survey found it takes an average of nine weeks for consumers to get over Christmas debts.

It also showed the amount of people taking more than nine months to repay festive borrowings is increasing — 6% of all those surveyed, compared with 4% last year.

Kieron Brennan, chief executive of the credit union group, said a lot of the debt built up at this time of year is not necessary.

“Our annual Christmas research again shows us that while people really enjoy the build-up and the time spent with family, many are over-spending and in many cases getting themselves into debt unnecessarily,” he said.

The survey found half of consumers expect to have to borrow money to get through Christmas, with people aged 35-54 the most likely to need credit and borrowing the most, an average of €445.

More women than men get into debt — 52% — but men borrow more money — an average of €435, the survey found.

The research found 8% of consumers have approached a moneylender to pay for Christmas and another 6% would consider a moneylender. It said 18 to 34-year-olds are the most likely to use one.

The credit union group urged people not to use moneylenders and reiterated its call for a cap on the interest rates they can legally charge.