Christmas on borrowed cash for many

One in four households will take on credit card debt to buy food and presents this festive season, according to the 2021 study of the European Consumer Payment Report.

That practice appears to have been reinforced this year, partly because consumers want to make this Christmas feel more like the pre-pandemic period, and partly due to the price hikes and the more difficult financial situation some consumers are in due to the impact of the pandemic on the economy and employment.

The survey, conducted by Intrum in 24 countries, found that Greece’s 25% rate of households having Christmas on borrowed money is the second-highest among the countries surveyed, matching that of the UK but trailing that of Ireland (26%). The European average stands at 16%.

The survey also shows 24% of Greek households expect that by the end of this year they will have the highest amount of debts ever, against a European average of 17%.

Households with children are more likely to take on debt to buy presents and food than those without. One in five parents say they take on more debt during Christmas, and many expect to be in more debt by the end of Christmas 2021 than ever before.

“One in three consumers say their financial situation has deteriorated since the pandemic, and many people feel the need for some significant credit to spend Christmas with their loved ones,” the Intrum report said.

[With information from Intrum]