The UK’s Rich Exercise Caution with Christmas Credit Card Spending
New research has revealed that when it comes to Christmas shopping, Britain’s wealthy are keen to exercise caution when spending with their credit cards. This is in stark contrast to those who are not so wealthy as they tend to spend what they can’t afford.
Contrary to common belief that the UK’s jet set would rather buy fast cars and expensive holidays, research from Barclays Wealth paints a more traditional picture as 72% of Britain’s would rather spend quality time with friends and family over buying luxurious Christmas gifts.
The research was based on 500 individuals with more than £100,000 investable assets (excluding property). Of those surveyed, 90% said that time with family and friends at Christmas was top priority; with 78% saying they would rather be at home than abroad for the festive period.
In stark contrast to the wealthy’s prudent approach to Christmas spending, those well less off will rely on credit cards and unsecured loans to help with the cost of Christmas spending, according to research by Maritz Research. Twenty per cent of those surveyed said they would be relying on their credit cards to help ends meet t this Christmas.
Susan Madeley, Director of Financial Research at Maritz Research, said: “ The desire to provide expensive gifts and holiday treats can make it very easy to overspend at Christmas. Credit cards are very convenient, but consumers need to be careful as added interest payments may mean your purchases end up costing more than you bargained for.”
Whilst Britain’s wealthy are prudent when it comes to credit card spending, one in ten of the less wealthy admitted to adopting a ‘buy now, pay later’ policy.
Credit card and loan companies’ morals have been called into question lately as two-thirds of respondents revealed that when offered increased spending limits by their credit cards, they were not asked about their ability to repay their card debt in the future.
Alisdair Milton
21st December 2006
More Information:
- Get The Most Out of Credit Cards This Christmas
With Christmas just around the corner, many consumers in the UK will see their wallets feel the strain of Christmas shopping. With many already overspending, one way to relieve the financial pressure over the festive season is to see what credit and store cards in the marketplace can save you money and offer rewards for those spending sprees.
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