Two million people cancel Christmas over money worries
Two million people are so worried about money and debt that they're not spending anything on Christmas. Millions more should be following their example, but feel they can't cut back, so are going even further into debt.
The findings were revealed by a study for loans company SalaryFinance. It highlighted that things have got so bad for some people that they have decided to opt out of Christmas altogether.
It's not the only casualty of people's money worries. Some 23% of people said they go out far less than they used to, 17% don't take as many holidays, 15% have suffered from depression as a result of their financial worries, and 10% say their relationship has been put under pressure.
For those with children, things are particularly difficult, with financial worries causing a fifth to borrow money from friends or family. Many families have had to make other sacrifices, such as selling their car or rehoming a pet.
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Debt
Meanwhile, 21% of people are using credit to fund Christmas, with a combination of credit cards, loans and payday loans. It demonstrates how easy we find it to slip into the red. In fact, over half (51%) of people who are working carry some form of debt - not including mortgages - which rises to 54% among those aged 25-34.
Men are more likely to be in debt (excluding mortgages), and 36% have £1,000 of debt or more compared to 28% of women. However, women are more likely to worry about it, with only 44% saying money worries have not impacted their life, compared to 54% of men.
Ignorant
The worrying news doesn't stop there. Not only are we in debt, but 24% of those with outstanding borrowing have no idea what interest they are paying.
Dan Cobley, Google UK's former Managing Director and SalaryFinance Co-Founder said, "Too many people are paying far too much interest on their credit cards and loans, and at this time of year these high interest charges can be particularly challenging."
What can you do?
If you have already overspent, you need to look carefully at how much interest you are paying on your debt, and shop around so see if you can borrow at a lower interest rate. Once you have done this, however, you need to work hard to ensure you don't go any further into debt, and use the money you were spending on interest payments to pay off the debt faster.
If you haven't finished shopping, and are either in debt or teetering near the edge, the answer is as obvious as it is difficult: stop shopping.
If you're honest with your loved ones they will understand. If they appreciate the toll that financial stress is taking on your life, they would far rather get nothing for Christmas and see your financial life improve than watch you go even further into debt and suffer even more in an effort to buy them an expensive present.
You don't have to cancel Christmas entirely, but can drastically limit present giving. You can run a secret Santa among your family so you buy for one person each, agree only to buy for children, or make arrangements to exchange something handmade.
Entertaining doesn't have to break the bank either. With judicious shopping around, creative approaches to frozen turkey, and a focus on the roast potatoes, you can eat for little more than £2 a head.
During the years of austerity families have come up with all sorts of ways of cutting the cost of Christmas, what's yours? Let us know in the comments.
