36% of UK households cutting back this Christmas

Some 36 per cent of UK households have said they will spend less on Christmas this year.

Figures from Legal and General's MoneyMood Survey show…

Some 36 per cent of UK households have said they will spend less on Christmas this year.

Figures from Legal and General's MoneyMood Survey show that for the third year in a row, there has been a rise in the number of people cutting back as the festive period approaches. Indeed, it is the highest response since 2010.

Only 59 per cent of those asked have said they have enough money to meet the expense of Christmas this year, which includes both presents and celebrations. The rest are facing a struggle to make sure family members get some joy on December 25th.

However, individuals should avoid overstretching themselves, as this could lead to a financial hangover in the new year. Anyone who feels they cannot meet their repayment schedule should seek out debt advice as soon as possible.

A debt management plan could be the answer for some UK adults, as it offers them a way to reduce their monthly outgoings and make managing their arrears easier. Consumers need to owe more than £1,500 to more than one creditor in order to qualify.

Across the UK, London, Wales and East Anglia are the three areas most having problems covering the cost of the Christmas period when compared to last year's figures.

Mark Gregory, Legal & General chief executive officer of savings, stated it should not come as a surprise that so many people are struggling to make ends meet. He stated one of the reason for this is the rise in petrol, which is making running a car more expensive than ever before.

The expert added 21 per cent of homes are in fuel poverty at the moment, while another 19 per cent said they are almost at this stage. "It's quite likely that higher fuel costs will have a significant impact on how the less well off households cope with the cost of Christmas," Mr Gregory remarked.

By Joe White

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