Xmas Spending "Presents" Problems to UK Shoppers

Surveys differ with The Guardian estimating a spending increase to an average of ?380 per person and Sky News estimating a reduction in spending from ?550 in 2009, down to ?490 in 2010. With figures so different it is impossible to establish any degree of certainty with any of the estimates and rather like an election, predictions can often go totally wrong.

Even with uncertainty among the estimates, it is clear that a growing sector of UK households will find themselves in difficulty if not from the Xmas spending, then from the New Year Sales and the frenzied bargain hunting which it inevitably brings.

Unauthorised overdrafts are predicted to rise, followed by emergency borrowing on high APR loans both from the high street and online payday lenders, who typically see double average lending at this time of year and into The New Year Sales period.

Many people taking out Payday Loans this Xmas for example, will not follow the stereotype of being on the poverty line and being exploited by loan sharks which is often portrayed by the mainstream press. The average Payday loan client is a young office worker, usually female around 26 years old, who on the whole is good with their money. Payday loan APR's are mostly lower than most banks unauthorised borrowing fees and provide the average young office worker a little extra financial flexibility around this time of year, which they won't find from their banks.

The daily mirror's recently published figures showed the absurdity of relying on APR's as a guide to short term borrowing, with Lloyds topping the list with an APR for unauthorised borrowing of 46,450,869%.

Typically those finding themselves in the red over the Xmas period should bear in mind that clearing these debts can take around 2 months on average and that they should remain cautious and conservative with their spending and borrowing to avoid getting into any further debts.

http://news.sky.com/skynews/Article/201011415831104
http://www.247paydayloans.co.uk/