Many people are likely to use borrow money and use credit cards to find their purchases this Christmas, Axa has stated.
According to Steve Folkard of the finance group, people manage to find the finances to help pay for Christmas gifts and entertainment “whatever their circumstances”.
However, he noted that this finance is likely to be acquired in a different manner this year.
“As people have less cash to spend you’d expect more people to be forced to borrow money on credit cards and overdrafts,” he explained
Such action could expose people to greater risk of credit card debt and require them to seek debt advice.
However, Mr Folkard also noted that spending could decrease due to the current financial crisis, adding that many retailers may hold early sales as a result.
Mr Folkard’s statement follow research conducted by Tickbox.net on behalf of Lloyds TSB, which found that 82 per cent of those surveyed have less money to spend over the festive season this year.
By Tom Musk