40% of people in the UK plan to spend less this Christmas

Friday, 25 November 2011 09:01

Many people in the UK will be cutting back on their spending this festive season as the current economic climate takes its toll on their finances.

According to consumer organisation Which?, four in ten people intend to spend less this Christmas than they did last, while half are concerned about how the annual holiday will hit them in the pocket.

While one-third of Britons revealed they had begun Christmas shopping early to ease the strain, others revealed they intend to make cutbacks in order to save cash.

For example, one in ten plans to buy an artificial tree they can recycle and almost the same proportion admitted they will be re-gifting unwanted presents to other people.

However, almost one-fifth said they will be using their credit cards for most of their Christmas purchases in 2011, potentially running up debts for 2012.

Which? executive director Richard Lloyd said there are some things people can do to save vital cash.

"Christmas doesn't have to be cancelled. Savvy shoppers can save money with online deals, discount days and pre-Christmas sales. You should compare prices between stores and don't be afraid to haggle to get the best price," he advised.

In related news, a study from PayYOURway.org.uk has found that more than £2.4 billion is to be given in cash, cheques or gift vouchers this Christmas, with 18 to 34-year-olds most likely to ask for money under the tree.

This could mean that retailers have to wait until after the big day itself to benefit from an increase in spending.

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