Christmas spend to rise to €1,177 as a quarter of us plan to splurge more than last year
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One fifth of Irish people plan to borrow an average of €631 to cover the cost of Christmas this year, with the average spend set to be 14% higher than last year.
Research published on Monday by the Competition and Consumer Protection Commission found that a quarter of Irish people expect to have a higher spend this year for Christmas because of rising prices and pressure to buy more gifts.
The average spend is expected to rise from €1,030 to €1,177.
Meanwhile, while 60% of people intend to fund the cost from their savings, one in five will be borrowing an average of €631, according to the research. It also found:
- 46% felt they would pay off any debt within a month;
- Almost a third (29%) thought it could take them up to three months to clear the debt;
- 18% plan to pay it off over the coming year;
- 5% have no idea when they might be free of Christmas debt;
- Those aged 35-54 expect to spend the most (circa €1,400 on average);
- 60% of parents expect to spend €1,000 or more while only 36% of those without children expect to spend that amount.
Competition and Consumer Protection Commission director of communications Gráinne Griffin said: “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.
“We encourage consumers to plan their spending where possible to avoid being left with a financial hangover in the new year.”
She urged people who have decided to borrow to consider all options before using their credit card or availing of “pay later” options online.
“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,” she said.
She advised consumers:
“Don’t ruin January by spending what you don’t have this Christmas — know the full cost of credit before you buy, and only borrow what you’ll be able to repay.”
Meanwhile, more than a third of respondents reported not having used a gift voucher gifted to them because it had expired while 26% had not used a voucher because it had been lost.
The survey also found that 15 to 24 years old are the most likely to say that the gift card or voucher expired (46%) and that they still have gift cards or vouchers that they still haven’t used since last Christmas (41%).
Ms Griffin said: “Our research showed that a quarter of consumers have lost a gift card before they had the chance to use it.
“If you have vouchers from last year, think about using them to buy this year’s Christmas presents.
“If you’re planning on gifting a voucher, do consider if giving cash instead might make it easier and quicker for the recipient to find the right gift for them.”
The research was conducted among 1,000 people.