Heartbreak as Brits say CANCEL Christmas over financial crisis | Personal Finances | Finance
Opinium’s survey of 4,002 adults for the Center for Social Justice (CSJ) found this Christmas has been overshadowed by the financial concerns of many as the economy continues to recover from the covid lockdown and that inflation has reached over five percent.
The poll also shows that more than a fifth of those polled (22%) plan to cut back on Christmas gifts for loved ones due to fear of debt, which is a quarter (25%) of all people. low-income respondents.
A third of Britons (33%) plan to borrow money or use credit to cover Christmas expenses this year, reaching 41% of 18-34 year olds.
Research also found that nearly one in ten (9%) will use an unregulated buy-now-and-pay option later this Christmas, meaning up to 500,000 people could find themselves sued by debt collectors in the coming months. This rises to 17% of people aged 18 to 34.
The CSJ affirmed that there is a financial generational divide, young people being particularly affected.
While nearly one in five (18 percent) of 18-34 year olds say they are currently experiencing financial problems, only one in twenty (5 percent) of those 55 and over say the same.
Andy Cook, Managing Director of CSJ, said: “The pressures of Christmas and New Years make this one of the most financially demanding times on the calendar, when too many people are in debt that they cannot repay.
“Without reliable credit options and the right support, thousands of vulnerable people are more likely to flock to illegal loan sharks who charge exorbitant APRs and violate basic consumer rights. “
He added: “The CSJ recommends giving the Illegal Money Lending team the resources and teeth they need to counter any increase in illegal loans and the sharks preying on the most vulnerable during this. should be a time of celebration. “
A separate poll by YouGov in October 2021 found that more than three-quarters (76%) of people earning less than £ 10,000 a year said they couldn’t afford the extra £ 50 compared to the cost of living . Figures from the Bank of England show that households are spending on average more than £ 700 more in December compared to other months.
Without reliable credit options, the CSJ warns that the UK could face an increase in so-called “hidden debt”, where vulnerable people find themselves forced to borrow from friends, family members and others. even to illegal sources, including dangerous loan sharks.
Almost four in ten UK adults (37%) are in debt at some point in their lives.