More people than ever relying on credit this Christmas

This week many workers will receive their last paycheck before Christmas. However only 51 per cent of people plan to use this to cover the cost of festivities, according to recent data published by MoneySuperMarket.com.

November salaries will cover a proportion of costs over Christmas, but consumers are reporting a necessity to rely on additional resources too. 33 per cent say they will need to use savings to cover costs, with a further 29 per cent using savings that are specifically for the Christmas period. 

30 per cent of consumers however admit that they will need to borrow money to cover the cost of Christmas. 23 per cent plan to use a credit card, while eight per cent will go into their overdraft. A further four per cent will ask for a loan from friends or family, and three per cent will take out an official loan. 

These numbers increase among 18 to 34-year-olds, who will find themselves in the most debt in the new year. 15 per cent of this age group plan on using their overdraft facility and seven per cent will ask to borrow money from friends or family. In contrast, just three per cent of those aged 55 and over will rely on their overdraft and none of this group plans on taking out a loan or borrowing money from friends or family.

Kevin Mountford, consumer finance expert at MoneySuperMarket, commented: "For many people, the end of November is the last time they’ll be paid before the festive period and for some it can be a struggle to make this money last. However, there is still time to make a budget and avoid spending more than planned."