ONE IN FOUR people expect to spend more this Christmas than they did last year, according to the Competition and Consumer Protection Commission (CCPC). 

New research published today found that the average expected spend this Christmas is up 14%, from €1,030 last year to €1,177 this year. 

The most common reason cited by consumers for a higher expected spend were that prices for things had increased this year (76%), followed by 47% of people who said they had more presents to buy this year. 

Those aged 35 to 54 expect to spend the most, though average expected spending is higher for all age groups compared to last year.

Parents with children under the age of 18 in the household expected to spend €1,510. Last year, this figure was €1,369. In total, 60% of parents expect to spend €1,000 or more while only 36% of those without children expect to spend that amount.

The CCPC found that while most people intend on using their savings to pay for Christmas, one in five consumers plan on borrowing an average of €631.

Of those who said they did plan to borrow, a quarter (25%) said they expected to borrow less than €249, 22% said between €250 and €499, while 21% said they expected to borrow between €500 and €999. 15% said they planned to borrow over €1,000. 

Borrowings was most likely to be used by 45-54 year olds (28%) and parents (26%), while 10% of 15-24 year olds expect to borrow money from a friend or family member.

“We encourage consumers to plan their spending where possible to avoid being left with a financial hangover in the New Year,” CCPC director of communications Grainne Griffin said.

“For those consumers who decided to borrow, before reaching for the credit card or clicking pay later, look at all your credit options. If it’s going to take you several months to pay the cost of Christmas back, then a traditional loan can often be a cheaper option than using a credit card or other high cost credit products.

Don’t ruin January by spending what you don’t have this Christmas – know the full cost of credit before you buy, and only borrow what you’ll be able to repay.

Meanwhile, more than half of respondents (55%) told the CCPC that they had had a negative experience with gift cards or vouchers, with 35% reporting that a gift card or voucher had expired before they had spent them. 

Over a quarter of respondents (26%) said that they had mislaid them, while 17% said the business had closed down before they could use them.

The CCPC found that 54% of consumers will take more than a month to pay off their Christmas debt.

While 46% felt they would pay off any debt within a month, almost a third (29%) thought it could take them up to three months and 18% plan to pay it off over the year. However, 5% have no idea when they might be free of Christmas debt.

Griffin encouraged anyone who has gift vouchers from last year to think about using them to buy this year’s Christmas presents.

“If you’re planning on gifting a voucher, do consider if giving cash instead might make it easier and quicker for the recipient to find the right gift for them.”

The CCPC said 1,000 interviews were carried out among a representative sample of the Irish population between 16 and 31 October for the survey.