One in six plans to use credit cards or payday loans to pay for Christmas follies


One in six Scots consider paying for Xmas going into debt this year, a new survey found.

Some 16 percent of those polled said they would use services such as payday loans, overdrafts or overdrafts. credit card to cover the cost of the stay.

The poll, conducted by YouGov, found that 13% planned to pay for the holidays with credit cards, approved overdrafts or secured loans, while an additional 3% intended to use payday loans, unlicensed overdrafts. , or buy now, pay for later products.

However, almost half of Scots plan to spend less Xmas than last year, according to the Citizens Advice Scotland (CAS) study.

Only 5% of respondents plan to spend more on Christmas.

A difficult year

Of those who plan to spend more, 41% do so to make their family feel better after a tough year, while 18% do so to feel better.

Just over one in 10 (13%) do so to make up for not having a vacation this year.

One in 20 people plan to spend more this year than usual (Photo: Matthew Horwood / Getty)

The CAS urged people not to spend more than they can afford to avoid another “drowning in debt” year.

CAS spokesperson for financial health Sarah-Jayne Dunn said: ‘What this poll shows is that almost half of Scots plan to spend less this year, a sign of the financial impact that Covid has had on household budgets across the country.

“Despite this, a significant number of people are still considering going into debt to pay for their Christmas and New Years. And our fear is that many more will end up doing it, even if that is not their intention now.

“It will be a Christmas like no other, and given the year we’ve had, it’s understandable that people feel the need to overspend to make up for what has been a miserable year for many.

“But we really want to urge people not to fall into this trap. Another year drowned in debt will only make matters worse. “

Excessive spending

She added, “It’s really important that people realize that spending too much now could mean preparing yourself for debt crisis in the New Year. And once you’re in debt, it can get out of hand so quickly, worsening your financial situation and impacting your mental health.

“A lot of people who come to ACR’s service with debt tell us that the problems all started with overspending around Christmas time.”

The charity encourages people to visit its recently launched Money Map online tool at which gives an overview of options for improving their income and lowering their cost of living, and includes tips on budgeting.

The survey of 1,862 Scottish adults was conducted between October 19 and November 2.

Additional reporting from the Press Association


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