With just 6 weeks to go until Christmas, many are running out of time to build up a pot of savings for seasonal spending. According to the latest research, one in 10 people are turning to credit cards to help fund the festivities.
New research from a price comparison website found that only 38% of the nation can actually afford Christmas this year on their disposable income. Many more have to use their savings, overdrafts, credit cards and even personal loans to pay for the holiday season.
A recent poll of 6,000 found that 11% of people said they will put their Christmas spending on a credit or store card.
4% of people will use their overdraft to see them through the season. Only 8% of Brits have planned in advance for Christmas and have been paying money in to a regular savings scheme.
ìChristmas is fast approaching, and a number of people may not be looking forward to funding the festive period,î commented, Kevin Mountford, Head of Banking at MoneySupermarket.
ìMany have been hit by the rising cost of living and the thought of paying for Christmas will no doubt push people to break the ice on their savings pot. ì
Cash-back Christmas credit cards
There is still time to apply for a credit card though. Cash-back credit cards are ideal for this time of year as they offer money back on your spending at a time when you may need it most. By continuing to use the credit card after the Christmas period, you could use the additional cash-back to pay for bills, holidays and other expenses.
However, it is worth shopping around for the best deal, which may also include a good long term balance transfer on 0% purchases. Check how long the introductory period offer lasts for and the APR when looking for a new credit card.
Compare credit cards with Money Expert.