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Consumers cut back on Christmas spending

Credit Risk & Affordability

One in four consumers are cutting back on Christmas spending

Plans for Christmas 2019 are being reined in across the country due to financial concerns, with one in four (39%) consumers cutting back on spending, according to TransUnion.

The global information and insights provider – one of the UK’s leading credit reference agencies – undertook research to look at wider consumer spending habits and found that many were planning cuts or changes because they were concerned about their financial situation.

Reducing Christmas spending was most visible with Londoners, with 50% of those in the capital intending to cut back. Parents were also particularly worried, at 40% – unsurprising given the costs that the festive period can incur for families.

The research also found that 30% of the population are postponing holidays because they are concerned about their financial situation, with Londoners again showing the highest levels of concern and 44% making holiday cuts.

“Our survey suggests consumers are tightening their belts as we head towards Christmas, and may be cutting back on some of life’s luxuries, like holidays, as they look to the year ahead,” says Kelli Fielding, managing director of consumer interactive at TransUnion in the UK. “Their caution is unsurprising, given the recent economic uncertainty, and will help ensure they don’t overextend themselves financially.

“However, according to our research, 62% are confident that their financial position will remain stable in the next 12 months, so as we embark on a new decade, with the political deadlock of Brexit hopefully coming to an end, it seems likely that we can embrace a period of renewed certainty.”

The full research findings, due to be released in early January in a white paper, will provide further insight into consumers’ attitudes and behaviours when it comes to borrowing. Register here to receive your copy.

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