Households across the UK have been hit with a £730 warning in the run up to Christmas.
It comes as new data shows around a third of adults are expected to use Buy Now Pay Later (BNPL) schemes between now and December 25. The study, by the Citizens Advice Bureau, claims around 15 million people will try to spread the costs to be able to cope with their Christmas expenses amid the cost of living crisis.
This follows a Park Christmas Savings study revealing this Christmas will cost the average UK family over £730. And the short-term money fix can result in financial troubles.
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Not planning effectively for Christmas can lead to an unwanted spiral of debt, with more than seven-in-10 Brits (71%) admitting they have struggled to budget for Christmas this year. The Citizens Advice study also reported that 21% of BNPL users miss a payment or pay late and 10% are visited by enforcement agencies or bailiffs as a result.
Katherine Scott from Park Christmas Savings told the ECHO: "Christmas is, undoubtedly, one of the most financially stressful periods of the year, so it’s hardly a surprise to see a rising number of people using delayed repayment services. The cost of living crisis has hit everyone hard and we all want to treat our loved ones at Christmas.
“[But] to be financially savvy and prepared for Christmas, it is imperative to think ahead with your savings by putting a little aside throughout the year. It can be difficult, particularly if you’ve not got much left at the end of the month, but by starting small, with what you can afford, you can maximise your chances of a financially stress-free Christmas."
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