Christmas 2011 came at a very high price for a number or Brits. With the Easter holidays only a few days away, new research has found that many British consumers are still repaying the costs of the last year’s Christmas – with the majority of Brits hoping to pay their debt off this June.
Last December it was reported how difficult it was for a number of British households to afford the Christmas festivities, now a new study from Halifax has revealed that many families are actually still paying for the 2011 Christmas holidays.
A total of 14% of British consumers are still paying off their debt from the festive season either on a credit card, through their overdraft or via local personal loans.
Out of the whole UK population, one in five consumers (20%) aged 18 to 44 years old are still paying back their Christmas costs. Older Brits, however, are the least in debt due to Christmas celebrations, as only 9% of those aged over 45 are currently still repaying their bill for Christmas 2011.
Regional figures for Christmas debt
Further figures show that Brits in the North East are the ones facing a higher Christmas debt, with 21% of them still repaying their December spending excess. Scots are, in contrast, the least in the red because of the Christmas holidays – with only 9% of them still repaying for their festive splurge.
Up to 29% of Christmas spending was covered by credit cards. Of those, an outstanding majority of people (91%) used them to pay for gifts, 61% to afford food and 28% to pay for entertainment. Finally, a further 22% of people covered their Christmas travel expenses with their credit cards.
Despite the fact that 18% of those consumers still in debt hope to clear their Christmas debt by June 2012, 9% of people believe they will still be repaying their 2011 Christmas holiday debt into 2013.
“Christmas is an expensive time of year as it is, but not budgeting for it well in advance can cost you more in the long run,” said Anthony Warrington, head of current accounts at Halifax.