Jingle bills: over a third to cut Christmas spending this year

New research from Go.Compare has found that financial worries are affecting how Brits are planning for the festive holiday, with over a third (35%) saying they’ve made the tough decision to cut their Christmas budget this year.*

Christmas is a time for hope, joy and coming together - but the latest research from Go.Compare money suggests that for many, financial worries are having a real impact on how they plan to celebrate.

The comparison site asked over 2,000 Brits about their plans and worries for the festive season, and 37% admitted they will have to be very careful with money this year. A further 35% stated they plan to spend less than in previous years, while 8% of people are taking the decision to spend money they don’t have in order to fund travel, gifts and other festive expenses. Additionally, 1 in 6 people (15%) stated that Christmas will be financially very difficult for them this year.

The new research also revealed that on average, Christmas expenditure will be a third lower this year, with people planning to spend £434 on average - down 34% from last year, when those surveyed revealed they would spend £658 on average.**

Matt Sanders, Go.Compare money spokesperson, said of the findings: “Our annual Christmas spending survey has revealed that many Brits are really feeling the pinch - which, with continued rises to the cost of living, won’t come as a surprise to many.

“While Christmas is a really joyful time it can also cause a lot of stress, as families face the cost of buying presents, travelling to see loved ones, and stocking up on festive food. Our research has found that a third of people are looking at a lower budget for the holiday this year - but worryingly, 8% plan to spend money they don’t have, which could cause mounting bills in the new year.

“Our data suggests financial pressure is also going to affect festive spending significantly, with the amount that people are planning to spend on Christmas having fallen significantly. This year the average festive spend is £434 - down from £658 last year.

“We would always advise that though there can be a lot of pressure to have a big celebration and buy great gifts, your financial stability should always come first. To help families save money and stick to their budgets, we’ve put together a few money saving tips for Christmas:

• Plan ahead - write out all your expected outgoings, including gifts, food, travel and other expenses, so you know how much you are likely to spend. This could also help you resist impulse buys you haven’t budgeted for.
• Time your shopping and use discount codes - take advantage of Black Friday deals and look around for discount codes before you buy, as this could save you considerable money.
• Haggle on regular bills - there’s no harm in asking for money off, and you can haggle on all sorts of bills - from broadband and TV, to car insurance and even energy.
• Reuse and recycle - try making your own wrapping paper and cards instead of buying them. It can save money, as well as entertaining the kids.
• Talk to your providers - if you’re worried about paying for your bills, whether it’s your mortgage or your energy, talk to your provider. They may be able to arrange a payment holiday or a new repayment plan.”

For more tips on how to save money and look after your finances, visit: https://www.gocompare.com/savings/money-saving-tips/.

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