One in five Brits still paying back last year’s Christmas debt
As new research finds Brits still struggling to pay off Christmas debt, GetPaidTo launches newChristmas Saver Club in a bid to help Britons save and earn ahead of Christmas.
17th August, 2015 – Last Christmas may feel like a lifetime ago, but it seems many Britons are still feeling the post-Christmas blues as GetPaidTo’s Christmas Saver Club reveals that one in five are still paying back last year’s holiday debt in August.
The research, which surveyed 2,000 people in the UK, found that over a third (34%) go into debt every Christmas, of which 82% admit to struggling to pay it back, whilst 20% are still paying for last Christmas.
It appears young professionals are struggling the most, perhaps down to pressure to purchase better gifts for family and friends now that they are working full time – almost two-fifths (39%) of 25-34 year olds go into debt over Christmas, more than any other age group.
When it comes to how Brits are getting into debt, nearly one in five (17%) are spending on gifts they can’t afford by paying via credit card and almost one in ten (7.5%) are using overdraft facilities. GetPaidTo’s research is a worrying sign of a nation that can’t afford Christmas. Whilst nearly a third (32%) mean to start saving before the summer is out, the same number of people (33%) aren’t saving anything at all. In fact, only 9% start saving in January.
In order to help Britons save this Christmas, cashback and rewards website GetPaidTo is today launching its Christmas Saver Club – the only saver club where there is no need to make monthly deposits, no tie-ins, no penalties, or any other restrictions. The new club allows users to complete tasks and get paid in GetPaidTo Points, where they can build up savings without using any of their own money. In addition to this, when users shop online via GetPaidTo, they will receive cashback on purchases which they can keep safe in the Christmas Club until they decide they need it. Savings will be automatically released on 31st October, although users can withdraw their savings whenever they choose.
"Christmas can easily become an expensive headache instead of the fun, family holiday it should be, so it’s upsetting to see so many people around the UK getting into debt" comments Karim Wilkins, CEO at GetPaidTo. "Now that we are approaching the end of the summer, many families will be looking to Christmas as their next big expense. With a third (32%) of people planning to start saving before September, it’s important to make sure we actually do it. No one should be funding Christmas months after the festivities end and the GetPaidTo Christmas Saver Club is here to help you get prepared this year."
The research also revealed some interesting insights around how Brits save. It may be the 21st century with option after option available when it comes to storing our savings, but surprisingly more than one in five (21%) Britons are still saving as though they were a child – using a piggy bank. Two-thirds (65%) are using their bank account – offering flexibility similar to the Christmas Saver Club where users can retrieve savings whenever they choose. However, the club also offers the chance to save on items they would already be purchasing, as well as having the opportunity to bank their earnings from the site.
Planning Christmas shopping
When it comes to kicking off the dreaded Christmas shopping, a surprising one in four (26%) start before the summer is out. However, the majority leave it until much later than that with a third (32%) starting in November and one in five (21%) in December. It appears Londoners are the biggest culprits of last minute shopping, with a third leaving their Christmas shopping to December.