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47% of parents 'under pressure to spend more than they can afford' this Christmas

By Helen Gradwell

22 November2021

Parents naturally want to give their children the best Christmas possible, but this can sometimes put them under financial strain.

MoneySupermarket.com has found that UK adults are planning to spend an average of 445 per person this Christmas - and children are set to receive an average of 132 worth of presents each.

When it comes to children's presents, 47% of parents are feeling pressure to spend more than they can afford. 34% say they're prepared to spend 'whatever it takes' to make their children happy.

Only 15% of British adults are planning to use their November paycheque to fund their festivities. Everyone else is planning to fund Christmas by using:

  • Their disposable income (37.4%)
  • Their savings (23.8%) or money from a special savings scheme (9.8%)
  • Credit, such as credit or store cards (10.6%) and their overdraft (3.3%)
  • Borrowed money from family or friends (1.7%)

19% expect that Christmas will push them further into debt this year.

An expert from All About Money said: "After the festivities of Christmas, most of us are a bit low on funds come January. For many this isn't really a problem - especially if they've used their disposable income or savings as funding.

"Those who have borrowed to fund Christmas, however, face the prospect of having to pay it back. Making absolutely sure that you can afford to repay what you owe before you actually borrow can make this much easier - and many pay back their Christmas debts without issue.

"But for some, this Christmas will just add to debts that they're already struggling with. It's natural to want to give your friends and family the best Christmas possible - but if you're in this situation the best thing to do is to get help with your current debts now, before they spiral out of control. Seek expert debt advice as soon as you can, and a professional debt adviser can talk you through your options."

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