The sums people look set to spend this Christmas have rebounded sharply when compared with last year, although the total is still marginally less than it was in 2022, according to figures published this morning.
The research from the Competition and Consumer Protection Commission (CCPC) suggests the cost of an Irish Christmas will climb by an average of 14 per cent this year, with one in four Irish consumers anticipating spending more than they did last year, with rising prices and pressure to buy more gifts cited as the most common reasons.
This year’s likely spend has been put at €1,177 compared with €1,030 in 2023 and €1,186 a year earlier.
Although most people say they will use savings to pay for Christmas one in five consumers will go into debt as a result, with the borrowing averaged at €631.
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Just under half of those who will borrow this year say they will have cleared their Christmas debts by the end of January, while almost a third said it would take until after St Patrick’s Day. Some 18 per cent said they would pay back the festive debt over the next 12 months.
The CCPC said it was worrying that 5 per cent “have no idea when they might be free of Christmas debt”.
“We can see that many consumers are facing into a very expensive Christmas, with one in five consumers planning to borrow on credit cards or other forms of credit to cover their costs,” said the CCPC’s director of communications Grainne Griffin.
“We encourage consumers to plan their spending where possible to avoid being left with a financial hangover in the new year. For those consumers who decided to borrow before reaching for the credit card or clicking pay later look at all your credit options.
“Don’t ruin January by spending what you don’t have this Christmas – know the full cost of credit before you buy, and only borrow what you’ll be able to repay.”
The research also noted that 55 per cent of consumers have reported a negative experience with gift cards and vouchers. Over one third said vouchers had expired before they had spent them, while 26 per cent said that they had mislaid them. Some 17 per cent told researchers business had closed down before they could use them.
“If you have vouchers from last year think about using them to buy this year’s Christmas presents,” Ms Griffin said, “If you’re planning on gifting a voucher do consider if giving cash instead might make it easier and quicker for the recipient to find the right gift for them.”
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