Survey finds Britons debt-averse this Christmas

Britons are increasingly seeking to avoid getting into deeper debt over the festive season, a new poll has shown.

The Moneymood survey from insurer Legal & General revealed 30 per cent of people plan to trim their budgets this year, while eight out of ten have revealed they have no plans to spend more this year than they did 12 months ago.

Legal & General’s executive director for savings Mark Gregory said this was a positive sign, commenting: “Our latest research suggests that households are taking a sensible approach to spending over the festivities and avoiding increasing debt.”

And he also welcomed news showing credit cards are only going to be used by a minority of people to fund shopping.

While 82 per cent will use cash and 58 per cent plan to dip into their savings, just 38 per cent will use plastic.

Mr Gregory said it is possible that “we are improving our ability to manage the ‘spend now and pay later’ culture, since the majority of Christmas spending appears to be coming from cash or savings rather than credit card debt”.

Such a sea change my be particularly welcome, as overspending at Christmas is commonly cited by debt charities as a cause of major financial woes, with these being particularly acute when bills start to arrive during January.

One such body, Credit Action, recently argued people should change their approach to Christmas and ensure they do not put themselves in hock for the sack of a few days of celebration.

Associate director Joanna Parsley noted 47 per cent of the population are set to begin next year owing money specifically because of their spending at Christmas.

By Amy White