Consumers in Ireland expect to spend around 14% more on average this year on Christmas than they did in 2023.
New research from the Competition and Consumer Protection Commission (CCPC) found on average, those surveyed expect to spend €1,177 over the festive period, up from €1,030 last year.
One in four consumers said they anticipate spending more, with rising prices and pressure to buy more gifts cited as the most common reasons.
The bulk plan on using their savings to pay for Christmas, but around one in five consumers plan on borrowing an average of €631.
“We can see that many consumers are facing into a very expensive Christmas with one in five consumers planning to borrow on credit cards or other forms of credit to cover their costs,” said CCPC director of communications, Grainne Griffin.
Some 54% of consumers said it will over a month to pay off their Christmas debt, indicating that they should shop around for the best form of credit.
46% felt they would pay off any debt within a month, nearly a third thought it could take them up to three months and 18% plan to pay it off over the year.
However, 5% have no idea when they might be free of Christmas debt.
“For those consumers who decided to borrow, before reaching for the credit card or clicking pay later, look at all your credit options,” said Ms Griffin.
“If it’s going to take you several months to pay the cost of Christmas back, then a traditional loan can often be a cheaper option than using a credit card or other high cost credit products.”
55% of respondents reported some form of negative experience with gift cards and vouchers.
Over a third of the 1,000 people surveyed by Ipsos B&A reported that a gift card or voucher had expired before they had spent them.
In excess of one in four reported having mislaid them, with 17% saying the business had closed down before they could use them.
“If you have vouchers from last year, think about using them to buy this year’s Christmas presents,” said Ms Griffin.
“If you’re planning on gifting a voucher, do consider if giving cash instead might make it easier and quicker for the recipient to find the right gift for them.”
Article Source – Consumers to spend 14% more on average this Christmas – RTE