Credit Crunch

Is Santa Skint

What will you get this christmas?

Several reports recently have shown that many UK families are planning on spending a lot less this Christmas than they normally would.

Half of Britons are dreading the run-up to Christmas and many are planning to cut back not only on presents but on parties and trips away for the festive season, according to research.

A recent survey of three thousand UK adults showed that on average, they’ll be spending less than £500 this year, which is a reduction of more than £100 on previous Christmas spending.

Many of those surveyed by the hotel chain Travelodge reported that they would buy less expensive gifts, cheaper food and festive drinks, attend fewer parties and cut back on home decorations.

Over half of those questioned said they would cut back on the number of gifts as well as what they cost and wouldn’t send so many Christmas cards, especially to work colleagues, neighbours and distant friends.

Four out of ten respondents said that they planned to shop in budget shops for gifts and festive food, while more than two thirds were hoping to avoid hosting a family Christmas Day dinner because of the cost involved.

Mark Kemp, Travelodge Reservations Director said, ‘Our report highlights the credit crunch is certainly changing consumers’ attitude and buying behaviour. The consumer trend is shifting towards a low-cost approach when shopping for goods and services.’

Many UK consumers have traditionally relied on credit cards to fund Christmas but for many who are already struggling to pay off existing debt, the option of running up more isn’t necessarily one open to them anymore.