Irish consumers are expecting to spend an average of 14% more this year on Christmas than they did in 2023, with the average planned expenditure rising from €1,030 to €1,177, according to new research from the Competition and Consumer Protection Commission (CCPC).
The study, which surveyed a sample of consumers, found that one in four respondents anticipate higher spending this festive season. The increase is primarily attributed to rising prices and the pressure to purchase more gifts.
While the majority of consumers plan to finance their Christmas spending using savings, approximately one in five said they intend to borrow an average of €631 to cover the costs. CCPC’s director of communications, Grainne Griffin, expressed concern about the financial strain many consumers are facing. “We can see that many consumers are facing into a very expensive Christmas, with one in five planning to borrow on credit cards or other forms of credit to cover their costs,” she said.
The research also revealed that many consumers expect to take a long time to repay any Christmas debt. Over half (54%) of respondents said they would need more than a month to pay off their festive spending, indicating the importance of shopping around for the best credit options. Nearly half (46%) believed they could pay off the debt within a month, while 30% thought it could take up to three months, and 18% anticipated it could take the whole year. Alarmingly, 5% of respondents admitted they had no idea when they would clear their Christmas debt.
Griffin offered advice to consumers who are borrowing to finance their Christmas purchases, recommending that they consider all available credit options before using high-interest products like credit cards. “If it’s going to take you several months to pay back the cost of Christmas, a traditional loan can often be a cheaper option than using a credit card or other high-cost credit products,” she said.
The research also highlighted a number of issues with gift cards and vouchers. More than half (55%) of respondents reported negative experiences with them, with over a third stating that their gift cards or vouchers had expired before they could be used. Additionally, 28% said they had lost them, and 17% mentioned that the business associated with the voucher had closed down before they could spend it.
Griffin advised consumers to make use of any unused vouchers from last year and to consider giving cash instead of vouchers to make the shopping experience easier for the recipient. “If you’re planning on gifting a voucher, think about whether giving cash might be a simpler and more flexible option,” she suggested.
