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With only 50 shopping days left until Christmas unprepared Brits look set to spiral into debt

Embargoed until: Friday 5 November

With only 50 shopping days to go until Christmas nearly three quarters (72%) of festive shoppers in the UK admit they have not been saving to cover the cost with a quarter (25%) admitting the celebrations will leave them in debt.

Research by Elizabeth Finn Care, the leading charity for people in financial need, has revealed that of the people who will end up in debt, almost a third (30%) predict they will be £100-£250 in debt with more than a quarter (26%) saying it will be between £250-£1000. Half (50%) believe it will take a month to three months to repay their Christmas debt while worryingly more than one in ten (11%) will still be repaying the money more than six months after Christmas Day.

More than one in six (17%) of UK adults who celebrate Christmas said they will cover the cost by using their credit cards and paying off the balance when the bill comes in, while nearly one in ten people (nine%) said they will also use their flexible friend without paying off the balance in full. Nearly one in 10 (nine%) will use an overdraft while 1 in 100 (1%) admit they will resort to using cash converters or pawn shops to cover the cost. Another two per cent say they will take on a second job and two per cent say they will be forced to borrow from friends and family.

Matthew Sykes, Chief Executive of Elizabeth Finn Care, said: “As a charity helping people in financial need we know the pressures people face in paying for essential day-to-day items including food and heating bills during the winter months and the cost of paying for Christmas puts increased pressure on people’s purse strings and can result in many going into debt.

“Our research reveals that despite people going into debt to pay for Christmas nearly two in five people (39%) will be spending less money this year with nearly a quarter of those (22%) cutting down on travel costs and 16 per cent cutting back on visiting friends and family. Whilst people should not spend beyond their means at Christmas time people deserve to celebrate the festive season with their loved ones which is why we are trying to ease the burden for the people we regularly support by sending them hampers to enjoy in time for Christmas.

“We also urge people in financial need to use our Turn2us service to check their entitlement to benefits and to see if they are eligible for help from any grant giving charities.”

Nearly two fifths of parents (37%) with three or more children under 18 living in their household say they will have to cut back on the amount of presents they buy their children this Christmas while one third (33%) say they will buy their children cheaper presents.

Of all UK adults who spend money at Christmas, nearly two fifths (37%) estimate they will spend between £100-£250, while nearly a quarter (24%) predict they will pay out between £250-£500 and one in ten (10%) say they will spend more than £500.

ENDS 

For information, photographs and interviews, please contact:
Laura Johnston, Press Officer. Telephone: 020 8834 9260. Laura.johnston@elizabethfinn.org.uk

Hythe House, 200 Shepherds Bush Road, London, W6 7NL.

 

Notes to Editors:
Elizabeth Finn Care

  • All figures, unless otherwise stated, are from YouGov plc. Total sample size was 2176 adults. Fieldwork was undertaken between 29th September - 1st October 2010. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
  • Elizabeth Finn Care is a national charity that helps people in financial need to improve their lives.
  • Elizabeth Finn Care gives direct financial support to people from over 120 occupational backgrounds, and through Turn2us helps millions more people in the UK to access the money available to them in welfare benefits, charitable grants and other financial help.
  • Turn2us is part of Elizabeth Finn Care, a charity registered in England and Wales: 207812 and Scotland: SCO40987
  • Since being founded in 1897, Elizabeth Finn Care has given away over £130m in direct financial assistance to people in need. In 2009/2010 over 3,500 British and Irish citizens received grants totalling almost £4m from Elizabeth Finn Care.

Turn2us

  • 13.5 million people in the UK live below the poverty line (source -  Households Below Average Income: An analysis of the income distribution 1994/95-2007/08). Yet latest annual figures show that around 16.8 billion of welfare benefits go unclaimed and there are also over 3,500 charitable funds available which distribute grants worth over £366 million a year.
  • Turn2us helps people to access to the money available to them in welfare benefits, charitable grants and other financial help.
  • The Turn2us free, confidential online service - www.turn2us.org.uk is designed to help individuals quickly and easily find welfare benefits, tax credits or charitable grants available to them - all in one place. The site has a number of tools to make the process simpler, including a benefits checker, grants search and ‘find an adviser’ tool to help locate someone to speak to. Over 3,500 charitable funds are listed on the website and people can apply online to many of the charities for help. In the last 12 months over 2 million people have used the website.
  • Turn2us works in partnership with organisations across the UK, including AdviceUK, Association of Charitable Officers, Citizens Advice, Child Poverty Action Group, Home-Start UK and Money Advice Trust to develop our services and reach the many millions of people that need our help.