Leading UK Buy Now Pay Later (BNPL) platform, Butter, has revealed that one in five of us plan to spread the cost of Christmas to help better manage our finances, with food being the number one thing we plan on buying now and paying later for.
The Cost of Christmas
Christmas may be the most wonderful time of the year, but it can also put a strain on our finances as we look to cover the cost of gifts, socialising and the all important Christmas food shop.
For the super prepared amongst us, saving for the festive season starts in January by opting for monthly saving platforms like Park, which then pay our savings back in gift cards and vouchers in time for the festive season.
But for those that prefer to shop without restriction (or leave it to the last minute), spreading the cost of Christmas can often mean battering our credit cards and overdrafts.
22% of UK consumers surveyed by Butter stated they will opt to spread the cost of Christmas this year.
Managing Finances This Christmas
For the vast majority (54%), spreading the cost of Christmas shopping allows them to better manage their finances, stomaching the increased spend while also avoiding a bleak, long January. A further 40% do so to indulge during the festive season by increasing the quality or quantity of their purchases.
When it comes to the area where consumers are most likely to spread the cost, it’s festively fitting that food ranks top.
Clothing was the second most likely purchase consumers would look to spread, with tech, home goods and entertainment also ranking high.
Timothy Davis, Co-Founder and CEO of Butter, commented:
“The older we get, the more we realise Christmas is about spending time with friends and family but for many, it can still be a very costly time of year. Overstretching financially can leave us facing a very long January and so it’s hardly surprising that in this day and age, lots of us opt to spread the cost rather than absorb it all during the month of December.
However, pressures around delivering the perfect Christmas can still see some of us overspend and so it’s vital that you sit down prior to your festive shopping spree and work out exactly what you can afford and how you are going to cover the cost further down the line.
Knee-jerk purchases can often result in additional charges when using credit cards or other forms of advanced credit and that’s the last thing you want to wake up to come the 1st January. The BNPL sector can help in this respect. Not only can you spread the cost of purchases interest-free, but you have far greater control and visibility over your repayment time frame.”