Midlanders say no to credit this Christmas
More than nine out of ten Midlanders say they won't borrow money to fund their Christmas spending and six out of ten think it will cost them less than £500 according to research from credit report service MyCallcredit.
Its research shows 63.2 per cent of Midlanders expect to spend less than £500 this Christmas compared to 57.3 per cent across the UK, while 26 per cent think it will cost between £500 and £1,000 against 29.4 per cent nationally. And 7.8 per cent of Midlanders said they would splash out more than £1,000 on Christmas compared to 5.4 per cent across the rest of the country.
The vast majority of Midlanders won't borrow to fund the cost of Christmas with 38.6 per cent saying their costs will be covered from savings (35.6% across the UK) and 49.3 per cent saying it will come from normal monthly income compared to an average of 52.7 per cent.
But of those people in the Midlands who will use credit only 41.2 per cent will have paid it off within three months compared to 67 per cent nationwide. And 9.8 per cent admitted they didn't know when they would clear their Christmas debts 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 but our research shows people in the Midlands have, by and large, got their Christmas costs under control.
"The vast majority of people in the Midlands have saved and budgeted and won't overspend this Christmas. But people who are going to borrow should do so within their existing credit arrangements and aim to pay it off quickly, otherwise they could be facing a Christmas hangover they'll be paying off this time next year."
- 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.
- The research was carried out by NEMS market research among 1000 adults for MyCallcredit between 28 October and 2 November 2005.