Over a million people in the West Midlands set to borrow money to pay for Christmas
It will take one in seven longer than six months to pay it back and some will need over a year, meaning their debt could begin to spiral
More than a million people in the West Midlands are planning to borrow money for Christmas, or other religious and cultural holidays over the next three months, new research suggests.
The Money and Pensions Service conducted a survey that shows that one in four (27%) are likely to borrow or use credit for upcoming holidays like Christmas and Hanukkah.
Among those, half (52%) said they're likely to use credit cards, while 29% would use 'buy now, pay later' and 21% would opt for an overdraft.
One in eight (12%) said they would turn to friends or family, and one in ten (9%) would go to a credit union.
Some are considering using high-cost credit, with one in seven (14%) saying they would use payday loans and 8% going for pawnbroker loans.
This year, MaPS is asking those who plan on using credit to pay for Christmas or other religious and cultural holidays to “take a breath before you borrow.”
Dawn Cummins, West Midlands Regional Manager at the Money and Pensions Service, said:
“The holidays are a wonderful time of year, but they can also make people feel pressured into spending much more than they can afford. With many households already feeling the strain, it’s unsurprising that many are looking to credit to fund the celebrations.
“What’s particularly worrying is that some will still be repaying when next year comes around"
"On top of the stress this can cause, this often involves using short term products for the sort of expensive, long-term borrowing they weren’t designed for."
“Credit is a useful tool, but it’s crucial to take a breath before you borrow."
If things are getting out of hand, or you start needing credit for essential costs, it might be time to seek help. "