New research from the Money and Pensions Service (MaPS) reveals that one in four Brits are planning to borrow money for Christmas and other religious and cultural holidays in the next three months.
The survey, conducted among 3,016 UK adults, indicates that 26% of respondents are likely to turn to credit to fund upcoming celebrations, such as Christmas and Hanukkah.
Among those considering borrowing, 52% plan to use credit cards, 35% prefer buy now pay later schemes, and 24% are opting to go into their overdrafts.
A further 17% would seek assistance from friends or family, while 9% are exploring credit unions. However, concerning trends also emerge, with 12% considering payday loans and 6% eyeing pawnbroker loans.
When questioned about the amount they intend to borrow, 45% anticipate borrowing between £101 and £300, while 23% expect to borrow £301 to £500. Additionally, 11% are considering borrowing over £500.
Caroline Siarkiewicz, chief executive of MaPS, 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 millions are looking to credit to fund the celebrations.
"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."
Talk to us about your personal finances.
