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Christmas on Credit?

20 per cent of us will be funding Christmas this year on credit

MyVouchercodes one of the UK’s leading voucher and discount code web sites asked people in the UK how they will be financing Christmas 2010 and rather alarmingly nearly 20 per cent of people said they would be using some form of credit.

According to the research 42 per cent of people want a loan, 26 per cent are planning on using store cards and 37 per cent will be using credit cards to buy their Christmas presents this year.

Almost 66 per cent of people who took part in the survey said they would be willing to get into debt to pay for Christmas, using an overdraft to pay for presents. A further 16 per cent said they will be paying for everything using their overdraft over the Christmas period; these people said they would be refunding their overdrafts during the rest of the year.

Why use credit to fund Christmas?

When asked the question:  ‘why are you planning on using credit to fund Christmas?’ – 34 per cent of people said it was because they cannot afford to save during the year and 14 per cent said it was because they would rather use credit and pay the interest, than save throughout the year.

At least one Christmas item was bought by 54 per cent of people  last year using a credit card or a store card.

7 per cent of people in the poll are still paying off debts from last Christmas and 9 per cent of people finished paying off debts from Christmas 2009 in June and July 2010.

Chairman at MyVoucherCodes, Mark Pearson said: “I can completely understand that Christmas is a great expense and can involve spending hundreds of pounds. However, I also can’t help but think that as it is the same time of year, every year, people have the time and resources to save for the festive season.”

“If people are struggling to fund the expense of Christmas, sites such as MyVoucherCodes.co.uk are a great way to save money. The site frequently has updated and exclusive discounts that offer savings on food, presents and decorations.”

Craig Gedey, Marketing Manager at Award Winning Debt Management Provider www.DebtAdvisoryLine.co.uk said: “using discounts and vouchers to get money off Christmas items is a great way to save money this Christmas.”

“The reality is that some people cannot afford to save for the expense of Christmas, even though we obviously all know when it’s coming.”

“At Debt Advisory Line we see people struggling to repay debts and keep up with living expenses throughout the year and we understand that finances can be put under enormous strain at Christmas.” On average our customers reduce debt repayments by 44 per cent; anyone who feels that they cannot cope should call us or visit our web site for further information; www.debtadvisoryline.co.uk