The majority of consumers plan to use their own cash to cover the cost of Christmas, a new study by Halifax has revealed.
A survey into spending habits found that 71 per cent of buyers are planning to use their own cash to buy items such as gifts and food, while 35 per cent are opting for a credit card and five per cent are planning on resorting to a loan to help them make purchases.
Those who choose to use loans or credit cards over the holiday are expecting to have an average debt of £449.
People who are planning to use such payment methods may wish to have a repayment strategy in place in order to minimise the risk of credit card debt.
Head of banking at Halifax Mike Regnier described the results as “encouraging”, noting that those who opt for “costly” store cards could end up paying more for their purchases in the long term.
Alan Brindley, head of Halifax credit cards, recently urged shoppers to stick to a budget when making Christmas purchases.
By Tom Musk