The end of the year holiday season is almost here. Many people will be spending money as they purchase gifts and travel to visit friends and family. British consumers spend over £390 each just for Christmas alone–a total of over £14 billion. An estimated 42% of consumers make purchases on Black Friday and another 25% on Cyber Monday. Until the end of the year retailers see massive sales increases related to Christmas, Hanukkah, Boxing Day, and New Year’s. Many consumers have developed a tradition of spending more than they should on credit cards. We will look at the ways that consumers are overspending and potential strategies to reduce these excesses.

Excessive Year-Long Overall Spending

The Office of National Statistics compared consumer spending from 2017 to 2016. There was an overall increase in money spent per household on all good and services. Some of the leading categories that increased were food, drink, clothing and recreation. The Association of British Travel Agents also reported that over 30% of people increased the amount spent on traveling.

Paying for Christmas Gifts

Ways of Paying for Gifts
Savings (Partially)81.5%
Savings (For All)57.3%
Credit Cards (Partially)38.5%
Credit Cards (For All)14.3%
Short-Term Payday Loan 12.6%
Other Personal Loan9.1%
Borrowing From Friends/Family8.9%

Accumulating Too Much Debt

The truth is many consumers are not responsibly managing their finances long before the holidays arrive. The Centre for Responsible Credit says over three-million households in the U.K. pay over 25% of their income to creditors. Roughly 50% of these consumers are in the lowest 20% income bracket. Younger people are increasingly coping with different forms of debt. Over 50% of those between age 18 and 24 have student loan debt. Over 40% of those between the age of 25 and 34 have credit card debt. The Financial Times reports that approximately 70% of those under the age of 34 borrow regularly to pay regular bills and household expenses.

Failing to Plan Ahead for Holiday Season Spending

Many consumers fail to consider how they will pay for holiday shopping despite overspending every year. One key is to create a savings plan and contribute to it each month. It is important to begin to save money in January or February. This is often challenging when your budget is tight. Put together a gift list with a gift idea for all those you are buying for when planning a holiday budget.

Spending on Extras (Add-On Items)

Often it is easy to overlook the many extra expenses that you will spend money on during the holiday season. For example, gift wrapping materials and greeting cards will add up quickly. When giving electronic gifts we often overlook the added cost of batteries. If traveling by car to visit relatives it is important to factor in the extra fuel costs. Those who mail holiday cards often forget that postage can really add up.

Benefits of a Small Personal Loan

Those who find themselves short on cash for the holiday season may consider a personal loan from Response Funding Limited. Some of the key benefits of our loans include:

  • Easy application process that can be completed using your preferred electronic device
  • Approval is fast and the funds may be deposited into your account in only one business day
  • You pay back the instalment loan over a three-month period
  • The repayment cycle is structured to allow you to maintain your other financial commitments
  • You will know the exact amount of interest and fees that you are responsible for upfront
  • You may still qualify if you have had past credit problems
  • The loans are unsecured and require no collateral or guarantor

Requirements for Our Quick Loans

Applicants must be adult U.K. residents that are currently employed. You must have an active checking account. The maximum amount that we will lend you is £125. Our personal online loan products are designed as a short term financial solution. Those who are currently unemployed or amid significant longer term financial difficulties are not suitable for these loans.

Fast Online Loan for the Holidays

Are you in need of some fast cash for the holidays? Our loan products are a practical and affordable way to receive the money you need with no long-term commitment. Those with less-than-perfect credit may still qualify. All terms and costs are clearly disclosed without hidden expenses in fine print. We encourage you to complete the quick and easy application process today!