Legal & General: Christmas saving 'even stronger'

25 November 2005
Brits want to save, not spend this Christmas according to Legal & General.

The life assurance provider's MoneyMood survey found almost 60 per cent of adults want to save money this Christmas compared to 52 per cent last year.

Head of direct investments at Legal & General, Julia Clayworth, said: "We think the 'MoneyMood' of the nation is still firmly in 'save' mode despite the usual appearance of Christmas goods everywhere to tempt us.

"Perhaps the fact that inflation hit an eight-year high in September and the news that interest rates are likely to remain on hold has taken the edge off the mood to spend."

The main reason people do not want to overspend at Christmas is because of the pressure of bills and existing debt, says Legal & General.

One in eight households have said they are not earning enough to pay their bills as well as cover debt repayments, while the number of households who have money 'left over' at the end of the year has fallen.

The number of households who say they have spare cash to cover extra expenses at Christmas has dropped to 59 per cent from 65 per cent last year.

A new survey this week revealed that two-thirds of Britons will use credit or store cards to buy Christmas gifts and more than a fifth will still be paying the bill a year later.

Equifax, the credit rating agency who conducted the survey, said 21 per cent of the 2,500 people surveyed said it would take them up to a year to pay of their festive debt 'hangover'.

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