Britain set to spend over £6bn on credit in lead-up to Xmas
- Noddle (free for life credit report service) issues Christmas warning with fears millions will be paying off Christmas well into 2014
- Study shows a third will rely on credit to get through the festive season and will spend almost £400 on credit cards, overdrafts and loans
- A third said they overspent last Christmas with 80% of those saying they had to make cut backs on things like food and heating to compensate
Provided by Callcredit Information Group, Noddle, the free for life credit report service is urging the nation to think carefully before overspending on credit in the run up to Christmas with research released today predicting that Brits could spend more than £6 billion in the next three weeks.
The research revealed that around a third of those surveyed admit they will rely on credit to get through the festive season with those who are, expecting to spend an average of £377 on credit cards, overdrafts and loans including payday loans.
That’s despite the fact that a third admit they overspent on Christmas last year, with 80% of those who did confirming they had to make cutbacks this year to account for their overspending.
A quarter confirmed they had to cut back on their food spend and one in seven heating their home.
One in 20 surveyed by Noddle stated that they will apply for more credit before Christmas 2013, while one in ten expect to be paying off credit well into 2014.
Noddle is urging consumers to take greater control of their finances and be careful about the amount of credit they use this festive season and to be realistic about how they will afford to pay it off in the coming years.
One way consumers can do this is by checking their credit report regularly. Before a lender approves credit they will carry out a credit search to ensure that the person applying for credit can afford to repay the funds. If a lender feels that an individual may be financially over stretched or that they have a poor credit record they could be declined for credit, which ultimately will have an impact on their credit score and ability to apply for future credit.
Tom Ilube, Founder of Noddle, commented “The research clearly demonstrates the need for consumers to take greater control of their finances particularly over the festive period. At a time when finances are squeezed consumers need to ensure that they are in control of their spending and can afford to repay any credit”.
Noddle was launched in April 2012 and has seen almost half a million consumer’s sign up to the free for life service. Consumers in the South East, North West, South West and Yorkshire & Humberside are leading the way when it comes to being more financially savvy with more consumers in these areas signing up for the free for life service than any others.