Londoners not splashing out this Christmas

Only 3.3 per cent of Londoners say they intend to spend £1,000 or more compared to a national average of 5.4 per cent according to research by credit report service MyCallcredit.

The majority of Londoners (55%) say Christmas will cost them less than £500 in line with the national average (57%).

MyCallcredit's research also shows most Londoners will fund their festivities from savings (35.9% against a national average of 35.6%) or monthly income (50.6% compared to an average of 52.7%).

Of the remainder, a lower number than average (7.1% against 8%) say they will put Christmas costs on credit and a higher than average number (5.1 % compared to 2%) admit they don't know how they are going to pay for it.

Of those who intend to use credit to cover the cost of Christmas 12.4 per cent of Londoners admit they don't know when this will be paid off compared to 7.8 per cent across the country.

Consumer affairs director Mel Mitchley says:

"Christmas is often a time when people can feel pressure to spend more than they can afford and our research shows the majority of Londoners won't be swayed into the trap of putting the cost of Christmas on credit.

"But for the small minority who are going to borrow they should do so within their existing credit arrangements and aim to pay it off quickly, otherwise some will be facing a Christmas hangover when it gets to summer next year. "

Key Findings
  • Southerners were more likely to use credit than any other region of the UK with 12.9 per cent saying some of their Christmas spending would be on credit.
  • East Anglians were the least likely to pay for Christmas using credit 4.3 per cent against a national average of 8 per cent.
  • People in Lancashire were most likely to pay for Christmas from savings (44.1%) while people in the South were least likely to use savings to cover festive costs (23.5%). Nationally 35.6 per cent of people said savings would pay for Christmas.
Editors Notes
  1. The research was carried out by NEMS market research among 1000 adults for MyCallcredit between 28 October and 2 November 2005.