Revealed: Over one in five Brits are feeling the pressure to overspend this Christmas

Christmas is a favourite holiday in the UK, with Brits spending up to a huge £2,500 over the Christmas period^[3]. But how much of this is spent due to pressure, and how do we actually pay for our Christmas?

Debt management company Lowell has taken a deep dive into Brit’s average spending at Christmas, looking at the biggest money pressures, and how Brits are funding their festivities this year compared to 2020.

The research revealed that the average Brit gets into £439 of debt at Christmas, and then needs four months to recover.

Brits’ biggest money pressures at Christmas
From stocking fillers to special gifts, over one in five Brits (22%) are feeling the pressure to spend above their means this Christmas. Those who are shopping for the festive season are spending almost £740 more than a usual month. And with December payday arriving early for many, budgeting is made even more important due to the long wait for the January payday.

As well as the pressures to overspend, the research also highlighted that people feel pushed to buy large, expensive items (14%), as well as feeling an expectation to keep up with social media’s up-and-coming trends (10%).

Brits’ biggest money pressures

Over one in six Brits are depending on Credit this Christmas

Christmas can be daunting for many Brits and finding those extra funds won’t always be easy. Following 2020’s lockdown Christmas, Lowell has compared how Brits are funding this upcoming festive season compared to last year.

Although fewer Brits (17% this year compared to 26% in 2020) are relying on credit cards, there is an expected increase in the use of other tools. Partly because savings are less likely to fund less of the purchases. Payment schemes such as ‘Buy Now, Pay Later’ have seen an increase of 39% in 2021^[4].