Fifth of Irish people intend to fund Christmas spend with loans
The consumer watchdog advised the public to plan carefully and list everything they have to spend money on this Christmas, such as presents, food, drink, nights out and travel, and consider how many paydays they have left between now and Christmas. File picture: Larry Cummins
Up to 20% of Irish people intend to borrow money to fund their spending this Christmas, while households with children expect to spend around €1,600.
New research from the Competition and Consumer Protection Commission (CCPC) has also found that 22% of people who received gift vouchers last Christmas haven’t used them yet while 7% of 25- to 34-year-olds plan to use “buy now pay later” services to cover Christmas expenses.
“From our research it appears that consumers are taking quite a sensible approach to Christmas spending,” its director of communications Gráinne Griffin said. “While costs have risen, most consumers don’t plan to spend any more than last year.
“That said, it’s easy for spending to get out of control at Christmas, and the price increases can hit particularly hard at this time of year.”
The consumer watchdog advised the public to plan carefully and list everything they have to spend money on this Christmas, such as presents, food, drink, nights out and travel, and consider how many paydays they have left between now and Christmas.
On average, consumers expect to spend around €1,163 this year compared to €1,177 last year. Those aged 45 54 expect to spend the most, €1,465 on average. Households without children, meanwhile, expect to spend significantly less than those with children at €995 on average.
The majority who intend to borrow to cover Christmas costs plan on using a credit card, while 40% say they save year-round for Christmas.
The CCPC recommended that credit cards are only a good choice if you are able to fully clear your bill in January. Otherwise, they can be the most expensive form of borrowing.
It also told consumers to try to clear the cost of whatever form of borrowing they do by Easter or summer at the very latest, so they’re not still paying off debt when next Christmas rolls around.
Three quarters of women start their Christmas shopping before December, compared to half of men.
In terms of vouchers, 63% of people received at least one gift voucher last Christmas while almost a quarter of these have not yet used them.
“Our research shows how popular vouchers are as gifts but if they’re not used, they’re a waste of money,” Ms Griffin said.
“We are encouraging consumers to use gift vouchers as soon as possible, and if you’re thinking of giving someone a voucher this year, maybe consider if they would prefer cash — it comes with fewer terms and conditions."
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