Irish consumers prepare for costlier Christmas: new CCPC research reveals one in four anticipate a surge in spending this year

December 9, 2024

Research published today by the Competition and Consumer Protection Commission (CCPC) reveals one in four Irish consumers anticipate spending more this Christmas, with rising prices and pressure to buy more gifts cited as the most common reasons. While most intend on using their savings to pay for Christmas, one in five consumers plan on borrowing an average of €631. Meanwhile, more than half (55%) report a negative experience with gift cards or vouchers.

• Average expected spend is 14% higher this Christmas than last (up from €1,030 in 2023 to €1,177 in 2024)
• Three in five consumers will dip into savings to cover Christmas spending, but one in five expect to pay for Christmas with credit, borrowing an average of €631
• More than half (54%) of consumers will take more than a month to pay off their Christmas debt, indicating that they should shop around for the best form of credit

While 46% felt they would pay off any debt within a month, almost a third (29%) thought it could take them up to three months and 18% plan to pay it off over the year. Worryingly, 5% have no idea when they might be free of Christmas debt.

CCPC Director of Communications, Grainne Griffin said:

“We can see that many consumers are facing into a very expensive Christmas with one in five consumers planning to borrow on credit cards or other forms of credit to cover their costs. We encourage consumers to plan their spending where possible to avoid being left with a financial hangover in the New Year. For those consumers who decided to borrow, before reaching for the credit card or clicking pay later, look at all your credit options. If it’s going to take you several months to pay the cost of Christmas back, then a traditional loan can often be a cheaper option than using a credit card or other high-cost credit products.

Don’t ruin January by spending what you don’t have this Christmas – know the full cost of credit before you buy, and only borrow what you’ll be able to repay.”

More than half of respondents (55%) reported a negative experience with gift cards and vouchers, with 35% reporting that a gift card or voucher had expired before they had spent them. More than a quarter (26%) said that they had mislaid them, while 17% said the business had closed down before they could use them.

Commenting on the use of gift cards and vouchers, Grainne Griffin added:

“Our research showed that a quarter of consumers have lost a gift card before they had the chance to use it. If you have vouchers from last year, think about using them to buy this year’s Christmas presents. If you’re planning on gifting a voucher, do consider if giving cash instead might make it easier and quicker for the recipient to find the right gift for them.”

The Competition and Consumer Protection Commission (CCPC) is the statutory body responsible for enforcing and promoting compliance with competition, consumer protection and product safety law, with new and expanding roles in digital and data regulation. We make markets work better and empower consumers to make informed choices.

Find out more about the Christmas Shopping Research Report 2024.

For help and advice in managing your money, please visit Managing your money – CCPC.

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