Many Britons will play ‘Scrooge’ this Christmas

As the economy struggles to survive the deepest recession since WWII, a study made by Saga Platinum credit card has shown that many Britons are cutting back on their shopping expenses this Christmas.

Saga’s study, which was completed in November, compared the average spending of the British public between 1999 and 2009. In the research, it was found that on the average, Britons spent at least £516 on presents in 1999 compared to £435, the amount adults are planning to spend this year in their gift-giving.

Saga explained that taking inflation into account, the real value of the 1999 figure is equivalent to £666 in 2009 – pointing to a sharp 35 percent drop in gifts spending.

The over-50s remain a little more generous, reducing their Christmas present spending by just a quarter (25 percent). With spending on family Christmas presents is set to fall – with children being affected most of all – it pays to find special offers wherever possible.

Because of the lingering economic problems, the majority of people are holding back on their holiday spending and buying only what they can afford. An estimated 52 percent, or more than half of the population, said they plan to use their regular income or salary to cover the costs of Christmas, and not resort to borrowing or withdrawing from their savings.

In 1999, only 33 percent of those surveyed said they would take the prudent approach.

Only 13 percent of those polled said they would use their savings to spend for Christmas. The figure was higher in 1999 when 31 percent of those surveyed said they dipped from their savings.

Saga said the research underscores the need of most people to keep their savings in these uncertain times.

People who will use their credit cards to pay for Christmas remained unchanged at 16 percent. Some 28 percent said they would pay back the balance immediately or do so when they receive their salaries after Christmas.

Again, people in the above 50s age group are wiser when using credit cards to aid with Christmas expenses. Thirty two percent of the 20 percent that will use their credit card said they plan to clear the balance immediately.

Looking for a credit card?

Whether it’s 0% on balance transfers or 0% on purchases, there are some good credit card deals to be had.

See our MoneyHighStreet section on credit cards for more – perhaps it’s time for a charity credit card or a football credit card?