Christmas will cost Irish households an average of close to €1,000 this year although spending will climb significantly once children enter the frame, according to research published on Friday by Ireland’s consumer authority.
The spending report from the Competition and Consumer Protection Commission (CCPC) suggests that 59 per cent of those polled will spend at least €500 while 30 per cent are planning to spend €1,000 or more.
Expected spending is significantly higher among those aged between 35 and 54, with 43 per cent of that cohort saying they are likely to spend at least €1,000 while 17 per cent are expecting to spend at least €2,000 over the festive season.
In news that will come as a surprise to absolutely no one, the research makes it clear that having children under 18 is a key factor in soaring Christmas spending, with those with children living in their homes planning to spend an average of almost 80 per cent more on Christmas.
The average expected spend for homes with children is put at €1,397 compared with €787 for those in homes without children.
While nearly two-thirds of people plan to use savings to fund their festive spending 34 per cent said they would have to borrow to fund their Christmas this year with credit cards the most popular source of borrowing.
The CCPC cautioned consumers considering using credit to help fund their Christmas expenses, to look for the cheapest options before using a credit card and to limit their debt as much as possible.
The CCPC’s caution comes as new forms of credit, such as “Buy Now, Pay Later”, are increasingly offered to consumers who are buying online and in-store. Similar to credit card debt, store finance options such as “Buy Now, Pay Later” can seem very attractive and appear to limit the financial cost of Christmas, however, these debts can quickly mount and consumers can end up facing multiple repayment demands in the new year.
