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Our recent client survey shows the shocking reality of how people have coped in 2020, and how they feel heading into Christmas and the New Year
- Two thirds of us (66%) saw their income drop due to COVID-19
- 82% of people feel financially insecure going into 2021
- 79% worry about how they will afford Christmas this year
- Two thirds of us (66%) are under pressure to spend on family and friends at Christmas
Results from our recent client survey have found that during a year where two-thirds of us saw our income drop due to COVID-19, 82% now feel financially insecure going into next year. This is even before Christmas spending has finished.
A staggering 79% of people surveyed said they worry about how they will afford Christmas this year and the lack of high street presence has led to panic buying online under the pressure of Black Friday and Cyber Monday deals. Two-thirds have borrowed to pay for Christmas (mostly on credit cards), so financial situations could worsen as we approach 2021.
Looking towards next year, the overall mood isn’t one of optimism. 82% feel financially insecure going into 2021. A reduction in income was the biggest cause of financial difficulties in 2020 and if this doesn’t return to normal or at least increase, a Christmas spending hangover could leave people in dire financial situations for the year ahead.
66% of those surveyed felt under pressure to spend on friends and family at Christmas, but PayPlan’s expert debt adviser, Jane Clack, has these tips to help you navigate the festive season and enter 2021 with more in your pocket:
“My advice right now is to work out a budget and stick to it. Once you know what you have coming in and going out in an average month, you will know what is available to spend at Christmas. You should also use a free benefits calculator and make sure you are claiming all (if any) benefits you are entitled to – it’s amazing how much you could be missing out on.
“This isn’t the year to be going overboard on Christmas spending. Yes, it may be tempting to splash out after such a rotten year, but 2021 will be worse if you are left with a pile of debt. If you are shopping, make sure you compare prices first and don’t panic buy. Stay safe and be ready for better times ahead next year.”