Tighter budgets are likely to cause families to not spend as much during the Christmas period, one money website has predicted.
Head of personal finance for Fool.co.uk David Kuo remarked that due to less disposable income and few options in terms of credit, many people will be cutting back over the festive period.
“What we could actually find this year is people realising that they cannot actually live beyond their means,” he explained, adding that people will be forced into having a “less lavish Christmas”.
Issues such as a reduction on overdrafts and the lack of availability of store cards were cited by Mr Kuo as factors affecting spending, while the risk of credit card debt may also be on people’s minds as they shop for presents and food in the coming months.
According to recent research by Birmingham Midshires, budgets for Christmas 2008 have fallen by £102, with Britons expecting to spend £604 over the festive period.
By Tom Musk