Christmas Spending

Christmas Spending

“It’s the most wonderful time of the year.

With the kids jingle belling.

And everyone telling you be of good cheer.

It’s the most wonderful time of the year.” – Andy Williams

The C Day really is nearly here now. Advent calendars are being opened, we’ve all seen that truck advert at least once, and presents are hidden all around the house. And throughout most households you can hear “DON’T EAT THAT – IT’S FOR CHRISTMAS!”

Food at Christmas is more than just a meal. It’s our family traditions, the smell of memories and laugher as it cooks. The warm and full feeling…which is shortly followed by feeling overstuffed after dessert.

Christmas spending is at the back of a lot of the public’s minds, especially because of present challenges. Food products claim 22 of the 25 highest price increases in 2023. In 2022 the average cost per head for Christmas dinner was £23.82 (from Tesco), what would Christmas be without the food? Then there’s the presents, it is estimated that the average person will spend approximately £600 on presents this year (2023), which is an increase of £180 on last year’s £420 spend.

How are we paying for this?

A lot of people turn to their credit cards when it comes to splashing out, or as a way of managing their own credit control. Credit cards are a financial tool which can be managed; however, this style of borrowing becomes a slippery slope if you don’t keep up with your repayments. Credit cards are easily accessible to obtain, with around 56% of credit cards being obtained online, and only 29% being obtained in a branch.

According to The Money Charity, by the end of February 2023 the UK public had an outstanding credit lending debt of £211.0 Billion. BILLION.

 

What can we do?

For some, not borrowing what you can’t afford to repay isn’t an option whilst we’re in the thick of the Cost-of-Living Crisis. However, reducing your borrowing against your outgoing expenses is the first way to manage your debt. Trim down the fat, Christmas shouldn’t be about the commercialism, it’s about family. You can spread the cost by doing handmade vouchers for upcoming events you’d like to gift to people.

If you’re concerned about your business’s financials, speak with a financial adviser. There are options aside from a traditional bank loan to finance your business. Such as, Invoice Finance.

Depending on where you’re at with your business, credit control, and debtors, there are options for you and your business within Invoice Finance.

For example, with our Recourse Factoring service; after the initial set up and credentials check, a deal can be made whereby you can receive a pre-payment of up to 80% on your upcoming invoices within 48 hours.

Enjoy the Christmas season, your way.