8 million people want to cancel Christmas due to financial woes, new poll finds

UK’s cost of living crisis exposed as poll finds widespread fear of getting into debt Eight million Brits, greater than the entire adult population of London, say they want to cancel Christmas this year because they are so short of money.

New Opinium research, commissioned by the Centre for Social Justice think tank, reveals that, against the background of spiralling bills, fear of getting into debt makes one in six adults want to scrap the festive season.

More than a fifth of respondents (22 per cent) plan on cutting back on Christmas presents for their loved ones due to debt fears, rising to a quarter (25 per cent) of all respondents on low incomes.

A third of Brits (33 per cent) plan on borrowing money or using credit to cover the costs of Christmas this year, rising to 41 per cent of 18-34 year-olds.

The research also found that almost one in ten (9 per cent) will use an unregulated Buy Now Pay Later option this Christmas, meaning as many as 500,000 people could find themselves being chased by debt collectors in the coming months.[1] This rises to 17 per cent of people aged 18-34.

A financial generational divide exists, with the young particularly affected. While nearly one in five (18 per cent) of 18-34 year olds say they are currently experiencing financial problems, only one in twenty (5 per cent) of those aged 55+ said the same.

With a rising cost of living, millions of Brits are cash strapped. A separate poll by YouGov in October 2021 found that more than three quarters (76 per cent) of people earning less than £10,000 a year said they would not be able to afford an extra £50 to their cost of living. Figures from the Bank of England show that households spend over £700 more on average in December compared to other months.

Without reliable credit options, the CSJ warns that the UK could face a surge in so-called “hidden debt”, where vulnerable people find themselves forced to borrow from friends, family members, and even illegal sources including dangerous loan sharks.

The poll also discovered that severe debt problems can have a detrimental effect on close relationships.

Almost four in ten (37 per cent) British adults experience debt at some point in their life.

Out of those who have experienced problems with debt, more than one in four (26 per cent) have seen their relationship with their spouse or partner damaged by financial concerns, while over one in ten have experienced strained relationships with parents (12 per cent) and friends (11 per cent).

To compile the research, Opinium surveyed over 4,000 British adults in early December.

Andy Cook, Chief Executive of the CSJ, said:

“The CSJ has long championed policies to prevent vulnerable people from slipping into unmanageable – and sometimes dangerous – forms of debt.

“Yet the pressures of Christmas and the New Year make it one of the most financially demanding times in the calendar, where too many fall into debt they cannot repay.

“Without reliable credit options and the right support, thousands of vulnerable people are likelier to flock to illegal loan sharks who charge extortionate APR and violate basic consumer rights.

“The CSJ recommends giving the Illegal Money Lending Team the resources and teeth it needs to head off any surge in illegal lending and the sharks who prey on the most vulnerable during what should be a time of celebration.”

Brian Brodie, CEO, of Freedom Finance said: 

“We’ve seen that people are afraid to ask for credit and find the process daunting. One in ten are afraid to apply for fear of harm to credit scores, or anxiety about the impact if they are rejected. The young, vulnerable and those with thin credit files are most at risk too from this recent research”

“Credit plays a vital role for many people and used in an appropriate way can help reduce expensive, drawn-out debt or to improve their wider financial wellbeing and at this time of year it’s important to help people understand their options”

“Technology allows people to apply for credit with the confidence that they will be eligible for that product, but we have to make sure everyone is able to access the right tools. The industry, and regulator, needs to make sure that we are taking a holistic view of individuals’ credit profile through open banking, and not blocking people from loans unnecessarily.

John Pears, UK CEO of Lowell, said: 

“The pressure to spend over Christmas when there are already pressures on personal costs is difficult, especially for those in vulnerable situations. Debts are not just for Christmas, they take time to repay and can have serious long-term impacts. Planning ahead can make a real difference and protect individuals from overspending during the festive period. We also hope that Government and businesses continue to look at ways to support those in vulnerable situations and ensure we can help break damaging debt spirals.”