1 in 5 say Christmas is going to be financially difficult this year……but festive spending hits a new high for 2023

New research from Go.Compare has revealed that people across the UK who will celebrate Christmas  this year expect to spend, on average, £658 this festive season*, which represents a 26% increase on last year’s expected spend of £522.20.**

The study, which was conducted on behalf of Go.Compare Money, asked more than 2000 people about their financial plans for this festive season and found that almost one in five (18%) believe Christmas is going to be financially difficult this year. A further 18% of those who took part said they will be putting either some, or the majority of their spending on a credit card.

Go.Compare Money’s annual Christmas spending study also revealed that nearly a quarter of people (24%) have been putting money aside throughout the year to pay for the festive celebrations.

Across the age groups, the average spend on gifts, socialising, travel and food will be £658 this year, but it’s those aged between 18-24 who will be splashing more cash than any other, spending an average of £835.30.

When respondents were asked about their concerns for Christmas, nearly a third (29%) said they were worried about their finances and a further 26% said they were worried about paying their bills. Another 25% said they were concerned about paying for the heating this Christmas.

Matt Sanders from Go.Compare Money, said on the findings: “This year’s research shows that, even though people are expecting to spend more this Christmas than they have in previous years, the financial concerns people have around the festive season haven’t changed.

“The increase in the amount people are expecting to spend could be reflective of the rising cost-of-living and how they may have to pay more for the same things - and aren’t necessarily being more extravagant. Either way, Christmas is clearly a big financial concern for many with 18% looking to put some or the majority of their Christmas outgoings on a credit card, many could be spending money they don’t have.”

Matt continued, “There are ways you can save on your expenditure this Christmas and one of the most effective ways is to shop around – whether that’s for groceries, household energy bills, insurances, credit cards or broadband deals – comparing costs can help limit what you pay on essential outgoings. We have put together some practical guidance for anyone who’s concerned about their finances this Christmas:

• First, draw up a budget based on your income and outgoings and stick to it. It will help stop you making impulse buys that you may then have to pay for in the New Year.
•  Research conducted by Go.Compare earlier this year found that, as the cost of living continues to rise, more than half of the UK population are either haggling on their regular bills or intend to do so. Of these bills, broadband and TV packages were the most popular bills to barter on, followed by car insurance, mobile phones, home insurance and energy costs. So, it’s always worth haggling on your bills and with an estimated half of the population already bartering, you could be missing out on significant savings.
• As well as haggling, try to find out when brands and retailers will be having discount days in the lead up to the big day – you may save 10%, 20% or 30% on gifts for your friends and family.
•  Use discount codes on your online shopping. Check out the various websites and bag money off, free gifts and the like, just for buying what you had planned to buy anyway.
•  If you are facing financial difficulties this Christmas, talk to your mortgage provider or landlord as soon as possible to agree a payment holiday or even a new repayment plan. One thing to consider with a payment holiday is that these will be recorded on your credit file and could lower your credit score. You could also talk to your bank about an agreed overdraft and an interest-free overdraft buffer and check with your credit card, loan or car finance provider to see what help is available in terms of a payment holiday or a new repayment plan.

Go.Compare has compiled a practical guide to saving money on a number of outgoings and everyday costs, which can be found here - https://www.gocompare.com/savings/money-saving-tips/