66% of UK households expect to return to their normal financial state within three months after Christmas, according to research from Ferratum Group.
In last year’s Winter Barometer, this figure was just 44%.
The Ferratum Winter Barometer, conducted in November 2019, surveyed over 31,000 households across 14 countries, including the UK, about their spending habits over Christmas. The survey revealed that 34% of UK households expect to pay off all of their Christmas loans or credit purchases within three months, with nearly the same number (32%) saying that it will take two months or less. Just 10% of households say that they will still be paying off their Christmas purchases after six months.
Tony Gundersen, Ferratum UK country manager, said: “A fall in real wages and continuing economic uncertainty is bound to have an impact on people’s finances, so it’s no surprise that families in the UK are using credit and loans to extend the payment window for their Christmas purchases.
“However, it’s encouraging to see that most people are using these options over the short term and have a clear plan to repay them. When used in this way, loans and credit cards can take a lot of the stress out of the holidays by spreading the cost over a more manageable period.”
The 2019 Ferratum Winter Barometer also shows that 45% of UK households are planning to finance their Christmas spending with savings, up from 44% in 2018, and 41% in 2017. Others expect to fund their purchases with consumer credit, credit cards and loans.