Although British shoppers plan to spend more this Christmas than in previous years, new research has discovered that only one in ten will use a form of credit to do so.
According to Callcredit, the figure is a drop from three in ten last year and suggests that people are becoming “more savvy” with their finances.
The biggest users of credit fall into the 45 to 54-year-old age group, with 16 per cent saying they will fund Christmas this way.
When it comes to paying back debts incurred over the festive period, 88 per cent of men believe that the credit they do spend will be repaid by March, compared to 77 per cent of women.
The credit reference agency also found that ten per cent of people – a figure that has doubled since 2005 – think they will spend more than Â£1,000 on presents and assorted festive goods.
Meanwhile, American Express is urging shoppers to compare credit cards and find one that offers rewards or points for purchases. Many credit cards offer incentive or loyalty schemes which could be beneficial to users this Christmas.
This article: Â© Moneyexpert Ltd.