By delaying spending and waiting for the sales
- 52% of consumers have delayed making a purchase until after Christmas because it would be cheaper in the sales
- APACS estimates that £27 billion will be spent on plastic this Christmas
- By signing up for Price Protection Insurance on a credit card, for as little as £1, consumers could save £8.7billion[1] - yet, only 4% of people do so
- The main reason why consumers increasingly prefer to use credit cards over cash is to help them manage their finances and for added security
Canny shoppers are delaying making purchases this Christmas as they wait to bag a bargain in the sales according to research from The Royal Bank of Scotland Credit Cards. Shoppers estimate they could collectively save £8.7billion by making their purchases after the 25th December and 52% of them are voting with their feet and putting off purchasing until after Christmas. Contrary to popular belief that spending at Christmas spirals out of control and into debt, the research has revealed consumers are a lot more savvy than they’re given credit for. Over three quarters of consumers (79%) have made financial provision for Christmas and will not struggle. However, a few will feel the pinch, 8% admitting they’ll have to rein in their spending in January to cover the cost. Nevertheless, a massive 81% of consumers plan to pay their credit card balance off in full after Christmas. Only one in ten people, who normally would settle their card in full, plan to spread the extra cost that the festivities bring over the next few months. Shopping tops the list for it concerns Christmas irritations with 90% of consumers finding the experience a chore. For 47% of people, making a purchase only to find it reduced in the sales is the single biggest irritation and being the victim of fraud is also a concern (38%). However, these irritations needn’t have financial implications. The Royal Bank of Scotland credit cards is reminding people that they don’t need to take the chance of paying over the odds before the sales - Price Protection Insurance is available to all its card customers. For just £1 for a 90 day trial, the company will refund the difference in the event that a policyholder finds their purchase reduced providing it is within 60 days of the original sale. Thereafter, a fee of £18.95 per annum is payable but there is no obligation to continue after the trial period has ended*. Fay Hogg, spokesperson for The Royal Bank of Scotland, commented: “There’s no denying that Christmas is an expensive time of year but it’s clear from our research that consumers are getting more financially savvy, planning ahead and using their credit cards to control their spending. Indeed, the major financial headache seems to be that age old trap of buying gifts for people that end up being cheaper in the sale. Our research shows that on average people spend £194 more than they need to by shopping before Christmas, yet for only a small cost, for a 90 day trial period you can protect against this eventuality. Surprisingly only 4% of respondents had this cover.” For further information or to apply for a Royal Bank of Scotland Credit Card consumers can visit their local branch, log onto www.rbs.co.uk , or call free on 0800 16 16 16. Financial News Feeds provided by OneCompare.com
Date published: 12/20/2004 12:00:01 AM
Financial News Feed Provided by OneCompare.com
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