Overspending at Christmas is causing people to get into debt
According to the latest research, 30 per cent of people in the UK get into debt every year due to overspending at Christmas.
The survey found that the total debt for people in the UK last Christmas was £3.5 billion last year, with the average debt per person being £200.
Gifts are the most costly Christmas expense, followed by food, with the average spend on a Christmas day meal being £102, while people spend £70 on drinks and £96 on Christmas decorations.
The research found that of those who borrow to pay for gifts and food, 25 per cent intend to use a ‘buy now, pay later’ scheme.
This figure rises to 36 per cent in the 16-34 age bracket, which is a demographic that is more likely to have insecure or irregular income, which can put them at a greater risk of problem debt.
It also found that those who intend to use a credit card for festive spending will take an average of seven and a half months to pay back debts accrued following the Christmas period.
Buying presents for friends and family is the most common way in which people get into debt, with 60 per cent citing this as the main factor, while 30 per cent say that purchasing food is a leading reason.
Three-fifths of workers admitted than Christmas-related financial stress impacted on their performance at work, while more than half used credit cards, overdrafts and payday loans during the New Year.