Many Irish families are scrimping and saving to pay for Christmas this year, according to a survey by Ireland’s consumer protection agency.
One-fifth of people polled for the Competition and Consumer Protection Commission (CCPC) plan to pay for festive celebrations through borrowing.
Many will still be paying off those debts when Spring arrives.
“We can see that many consumers are facing into a very expensive Christmas with one in five consumers planning to borrow on credit cards or other forms of credit to cover their costs”, says Grainne Griffin from CCPC.
“We encourage consumers to plan their spending where possible to avoid being left with a financial hangover in the New Year.”
One in four Irish consumers anticipate spending more this Christmas due to higher prices. Pressure to buy more presents was also cited as one of the common reasons for spending more this year.
One in five consumers plan on borrowing an average of €631 for Christmas this year. Three in five consumers say they will have to dip into their savings to cover Christmas spending.
“For those consumers who decided to borrow, before reaching for the credit card or clicking ‘pay later’, look at all your credit options. If it’s going to take you several months to pay the cost of Christmas back, then a traditional loan can often be a cheaper option than using a credit card or other high cost credit products”, advises Grainne Griffin.
The Competition and Consumer Protection Commission has an advice section on managing money on its website.