With the festive season on the horizon, a Christmas credit predicament looms large for British households, as a considerable portion of the populace turns to credit cards as a financial remedy for their holiday shopping sprees. A recent study by finder.com reveals that nearly 23 million Britons are contemplating relying on credit to offset the expenses of Christmas gifts and other seasonal purchases.
Breaking down the data, the study by ‘finder’ discloses that 43% of UK adults—equivalent to more than two in five—are gearing up to charge an average of £627 on their credit cards this Christmas. This spending, representing almost a quarter of the country’s average monthly salary which is about £2,730, is poised to result in a collective debt exceeding £14.3 billion.
A closer analysis of the data by age group unveils a generational trend in Christmas spending habits. Younger demographics appear more inclined to use their credit cards for festive shopping, with Generation Z (18-23) leading the charge at 61 percent. Millennials (24-42) closely follow at 56 percent, trailed by Generation X at 39 percent.
Conversely, baby boomers aged 55-73 seem less enthusiastic about resorting to their cards, with only 29 % embracing this approach. In a surprising twist, the silent generation (74+), although fewer in number, intends to splurge more on their credit cards, averaging an impressive £765 in Christmas spending.
As the holiday season approaches, the study sheds light on the financial strategies adopted by different age groups, indicating a widespread reliance on credit cards to navigate the expenses associated with Christmas festivities.