Studies Show that as Many as One Third of Brits Will Borrow Money and Get into Debt this Christmas

‘Tis the season to be jolly by all accounts – and according to one third of Brits, being jolly means spending a lot of cash.

That’s right, as many as one third of Brits – and that’s 16.9 million people in numbers – will borrow cash in order to pay for presents this Christmas. That’s not to mention the 10.4 million of them who will put their Christmas food onto some sort of credit.

But why do we do it, and is it really necessary to do so? Today we’re going to be exploring the reason why so many people overspend during the festive season, and how it could be prevented in future.

Why Do We Do it?

We’ll start off by answering the question why we feel the need to spend so much at Christmas time. The answer to this is very simple and can be summed up in one word – pressure.

For all that the season itself is a wonderful time to spend with family and friends, it’s also a lot of pressure to impress. This is why so many people look into applying for a loan, when they perhaps wouldn’t normally.

Feel the pressure, but not sure where it’s coming from? It’s all around you.

Every single Christmas advert points to having the “perfect” day – whether that be buying the best gifts, preparing the most delicious feast, or wearing the most dazzling festive outfit. These adverts will always depict happy families, and therefore drum into our subconscious that in order to keep everyone happy, everything must be “just so”.

But it doesn’t end there. There’s a certain amount of pressure to eat more, drink more and socialise more too – and that’s without even taking into consideration the almighty expectation that we should all be happy through every moment in December. When you think about it like that, it’s no wonder that people get so stressed at Christmas.

Now, we would highly recommend taking a step back and remembering that Christmas day is very simply just that – another day. Try taking the pressure off yourself, and celebrating the day by keeping in mind what it’s actually supposed to be about.

It doesn’t hurt to save money where you can though, so we’ve compiled a couple of suggestions to help you to cut back on your spending during the festive period:

Formulate a Budget

This is one to keep in mind for next year particularly. Formulate a budget before starting ANY of your festive spending.

It might sound like a bit of a hassle, but trust us, it’s worth it. A budget is very simply a calculation of how much money you have available to spend on a particular item or event, so sit down, do the maths, and see where you stand.

What you need to do is figure out how much money you have coming in on a monthly basis – or your income. Then, figure out the sum of bills and other necessities you must pay out for on a monthly basis – this is your outgoings. Everything left over is disposable income, and is the maximum amount you can financially afford to spend on Christmas without lending or getting into debt.

Then, make a list of everything you need to buy – food, presents, decorations etc. Split the money into sections and work out how much you can afford to spend on each thing – but be realistic. This is your budget. So long as you stick to it, you’ll see an almighty difference in your spending habits over the holidays.

Say “No”

Money aside, we suggest exercising your right to say “no” if things are starting to get expensive, or feel a tad overwhelming.

We know it’s expected of us to go for Christmas drinks, Christmas meals, to Christmas parties all through December – but all these events add up financially and it can get downright exhausting, wouldn’t you agree?

Therefore, if you feel you’re overspending or overexerting yourself, as most of us do at this time of year, exercise your right to use that very simple, two-lettered word. No.

Those who love you will understand, and know that you can go for drinks and catch ups at literally any time of the year. It doesn’t have to be right now.

Remember, that most of us find Christmas a pricy time, so if you’re honest with people they’ll respect that. Enjoy the season for what it is, and don’t let pressure talk you into doing and spending more than you can. You’ll have a merrier Christmas for it!

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.