Monday, December 14, 2009
Category:
Secured Loans
According to uSwitch.com, 56 percent of people will be purchasing fewer gifts this Christmas, 44 percent will be steering clear of gadgets, and 10 percent are intending to buy traditional gifts for children.
Furthermore, 45 percent will reportedly be making cut backs where food and drink are concerned.
The research also uncovered that 78 percent will be bargain-hunting, whilst 12 percent will produce home-made presents. An additional 47 percent will be sticking to a tighter budget when it comes to buying gifts, and 23 percent will be buying them for less people. Up to £300 is planned to be spent on presents by 52 percent, with 11 percent of this group set to spend under £100. It was discovered that 63 percent will be shelling out up to £200 less on presents than they did last year, whilst 18 percent will be spending between £200 and £300 less.
However, of those who will be reining in their spending on children’s presents, it has been revealed that only 32 percent will explain the reason for this. In fact, 27 percent are not going to offer an explanation in the hope that children ‘won’t notice’, and 20 percent are of the opinion that children should be appreciative of having a present at all.
Despite attempts to cut back on Christmas expenditure, 40 percent of people will struggle with their finances as the New Year commences according to the research. What's more, the period will be ‘very tight’ for 33 percent, whilst 7 percent are reportedly going to find it difficult paying their household bills.
Director of Consumer Policy at uSwitch.com, Ann Robinson, commented: "People still intend to enjoy Christmas, but in a more simple and honest way than perhaps we have seen over the last decade. Crucially, many households have heeded the lessons of the last year and have scrimped and saved, set budgets and agreed spending with friends and family. This kind of pre-planning is essential if you want to avoid financial strain in the New Year as the bills come in.
"Yet despite this, four in ten people are still going to experience some financial worry next year as a result of Christmas. And that's why it's so important that children understand the concept of cutting back too - explaining what a tighter family budget can mean and getting children involved is a vital part of their development. Shielding them from the impact of the recession this Christmas or just hoping they won't notice is not doing them any favours - understanding money, budgets and spending will set them up for the future. By taking the opportunity to explain why Santa isn't being so lavish today, you could be helping them avoid their own financial pitfalls tomorrow."
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Homeowners who have had to rely upon credit cards and personal loans in the past could consider consolidating these with a
secured loan. A secured loan for debt consolidation is one of many finance options available, and could leave the borrower with just one monthly repayment as opposed to juggling several. This replacement monthly repayment could even be lower than current outgoings thereby leaving the borrower with extra money each month. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
