REVEALED: How Much Money We’re Borrowing to Pay For Christmas

Research by the Competition and Consumer Protection Commission (CCPC) has shown that one in three people think they will have to take out loans to finance their Christmas expenses.

The average family will spend nearly 1,300 euros in the run-up to Christmas, the CCPC found.

Although 65% of consumers use their savings to fund their seasonal expenses, one in three said they intend to take out a loan this year to cover their Christmas expenses.

Credit cards (29%) turned out to be the most popular form of credit this Christmas season, followed by financing options for businesses (4%) such as hire purchase or “buy now, pay later” loan agreements. Another 4% of respondents plan to sell investments to cover their Christmas expenses, while 3% want to take a traditional loan from a bank or credit union.

“While there are now many different ways and means to access credit, it is important for consumers to remember that all credit options come at an expensive price when you extend your repayments into the New Year,” said Grainne Griffin. Communications director at the CCPC.

“It is critical that consumers keep track of their debts and when repayments are due. From credit cards to online loans to ‘buy now, pay later’ shopping options, it has never been easier to pile up multiple debts and run the risk of overwhelming repayments when the holiday season is over.

“With many consumers shopping early in the year, this may mean credit card bills and other repayments may also come due earlier, possibly before Christmas,” said Ms. Griffin.

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