Saga notes Christmas spending cutbacks

Britons are looking to spend less money this Christmas, a new study indicates.

With the big day just a few weeks away, new research reveals that consumers are looking to take a frugal approach towards their finances.

Indeed, figures released by Saga Platinum show that the average Briton is looking spend some £435 on presents this Christmas, compared to the £516 that was splashed out a decade ago.

However, the firm points out that when inflation into account the actual value of the money spent in 1999 stands at £666, some 35 per cent above this year’s predicted expenditure.

Despite estimations of a fall in spending, a significant number of people will be looking to use their credit card in order to fund the purchase of presents, food and other Christmas fare. Some 16 per cent of those questioned told the firm that they are looking to finance the festivities using plastic, the same percentage that was recorded ten years ago.

Of such consumers, 28 per cent are planning on repaying what they owe as soon as possible.

However, those over the age of 50 are not only more willing to use their credit cards, they also appear to be taking a best credit practice approach towards repayments.

Around one-third (32 per cent) of people in this age group claim they will use their credit cards to help pay for Christmas gifts, with 20 per cent of these intending to clear their balance immediately.

Figures from the organisation also indicate that 13 per cent of people are prepared to dip into their savings accounts in order to meet the cost of Christmas, down from the 31 per cent who planned to do this ten years ago.

Meanwhile, a Daily Mirror article published last month pointed out that although a credit card can be a useful means of meeting the cost of Christmas, such a product should be used with caution.

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