New research out today from the Competition and Consumer Protection Commission (CCPC) has revealed that one in four Irish consumers anticipate a surge in spending this year, with rising prices and a pressure to buy more gifts cited as reasons.
The research published on Monday shows that the average expected spend is 14 per cent higher this Christmas than last (up from €1,030 in 2023 to €1,177 in 2024). Three in five consumers say they will dip into their savings to cover Christmas spending, but one in five expect to pay for Christmas with credit, borrowing an average of €631.
The report was carried out in October 2024 and based on 1,000 interviews, conducted among a representative sample of the Irish population.
Meanwhile, more than half (54%) of consumers will take more than a month to pay off their Christmas debt, with the body encouraging such consumers to shop around for the best form of credit.
While 46% felt they would pay off any debt within a month, almost a third of those surveyed (29%) thought it could take them up to three months and 18% plan to pay it off over the year. Worryingly, 5% have no idea when they might be free of Christmas debt.
CCPC Director of Communications, Gráinne Griffin said: “We can see that many consumers are facing into a very expensive Christmas with one in five consumers planning to borrow on credit cards or other forms of credit to cover their costs.
“We encourage consumers to plan their spending where possible to avoid being left with a financial hangover in the New Year. 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.”
More than half of respondents (55%) reported a negative experience with gift cards and vouchers, with 35% reporting that a gift card or voucher had expired before they had spent them. More than a quarter (26%) said that they had mislaid them, while 17% said the business had closed down before they could use them.
Commenting on the use of gift cards and vouchers, Gráinne Griffin added:
“Our research showed that a quarter of consumers have lost a gift card before they had the chance to use it. If you have vouchers from last year, 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.”