Yolt: 11 million UK adults feel unable to spend as much on christmas this year as a result of the pandemic

New research* from Yolt, the award-winning smart money app reveals today that the economic downturn has caused a shift in people’s attitudes towards saving and spending this festive period, where a third (33%) of UK adults admit to feeling unable to spend as much on Christmas this year.  

Yolt’s research found the change in consumers’ financial priorities are a result of the uncertainty with three in ten UK adults (29%) admitting to feeling more anxious about not being able to afford Christmas. Worryingly, one in seven (16%) think they are likely to get into debt financing Christmas this year.   

A fifth of consumers (21%) expect their Christmas spending to decrease by an average of £151 this year, equating to £1.7bn across the country, and over half (58%) who plan to spend less will be buying fewer presents to offset costs. Almost half (47%) will be buying less expensive presents and over a third (36%) are not planning to socialise as much—a figure that may be set to increase depending on lockdown restrictions across the UK during the festive period.  

Pauline van Brakel, says “Finding the right balance between spending at a time like Christmas and putting money aside is tricky at the best of times – let alone when dealing with the current uncertain economic situation. At what can feel like the most expensive time of year, and with 1 in 7 people saying they are likely to get into debt financing Christmas this year, it is important for people to be mindful of their spending habits to avoid running into debt after Christmas. Our research shows many people (27%) have a desire to ensure they are spending smart over the festive period and Yolt wants to empower users to be smart with their money and help them find ways of balancing spending and saving while enjoying themselves, even amid the challenging times we find ourselves in.” 

Yolt’s recently launched evolved app comes at a time when UK consumers are seeking to balance the books this Christmas, helping consumers save as they spend to spread the Christmas cheer this year. 

Pauline continues: “We’ve launched an evolved version of the Yolt app to help people save whilst they spend. The app enables people to spend smart by earning them cashback on their purchases at selected retailers, finding them competitive deals on their household bills and even spotting Christmas bonuses or refunds and prompting users to add them to their virtual savings jar. Christmas is a time to spread cheer and savvy spending in the run up is always a good idea- the evolved version of the Yolt app can support people in their efforts to ensure they don’t overspend and help them make savings along the way.” 

Sue Anderson, Head of Media at debt charity StepChange added: “Whether or not you’re facing debt problems, tools that help you budget and keep track of your finances are very useful. In fact, making a budget is the first step to resolving debt problems – but sometimes it isn’t enough in itself, and that’s when you might need some help. If that’s the case, and money management alone isn’t going to solve the problem, debt charities like StepChange (www.stepchange.org) can help you walk through an entire budget process and identify potentially suitable solutions to help address your debt.”