A fifth of Brits will use credit to pay for Christmas

Despite the economic gloom, Brits are full of Christmas cheer and are not holding back on seasonal spending.

New research from HSBC has found that 21% of people are prepared to pay for presents on credit cards. Store cards will also be popular at that particular time of year, as people aged between 35-44 make up 22% of all those using credit to fund Christmas.

13% of 18-24 year olds will turn to their overdraft in order to fund the festive period. However, 3% will take out a personal loan and a further 2% will use a payday loan.

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The research found that UK adults will pay an average of £560 celebrating Christmas this year. An average of £378 will be spent on gifts for their immediate family, and an additional £183 on food, drink and entertainment.

The biggest spenders come from the North West of England where an average of £852.984 will be spent on the festive period. Despite high inflation, high household bills and mass unemployment, 20% of those surveyed said they will spend more this year compared to 2010.

ìDespite the recent economic gloom, many households still plan to spend money celebrating this special time of the year,î said Ashtar Antoine, HSBCís Head of Current Account Management.

ìIt is clear that the majority of households are looking to get the best value for their money, with discount vouchers and retailer reward schemes popular methods of saving cash.î

ìOver two thirds of people will fund their present shopping from their salary or other income.î

Savvy shoppers are still looking for a good deal or bargain when it comes to Christmas shopping though.

The research found that 38% of people will use discount vouchers and 78% will try and save cash, by one means or another, to get the best value for their money.

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