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GHOST OF CHRISTMAS PAST HAUNTS INDEBTED BRITS

- New price saving site launches to save Brits up to 20% this Christmas -

As the nation approaches the final countdown to Christmas, new research rings alarm bells over the financial impact of Christmas in credit crunch Britain. The research from the new money saving website Savebuckets.com reveals that as Brits prepare for Christmas, many are still paying off last year’s festive spending.

With 41 per cent of Britons paying for Christmas on credit last year, almost one in five are still paying for last year’s festivities (17%), fewer than one in three having cleared their Christmas debts when their January credit card bill arrived (29%).

Following a year of consumer confidence in 2006, Christmas spending soared 52 per cent in two years (from an average £548 per adult in 2004* to £837 per adult in 2006), with over one in five Brits spending over £1,000 on Christmas last year (22%). This year, with spending power at its lowest level for 10 years**, consumers are feeling the financial hangover from a more confident Christmas enjoyed on the credit card and loans.

Alarmingly, it is cash strapped youngsters and low income earners who, having spent the most on last Christmas, are most likely to be feeling the repercussions of last year’s spending spree (see figures below).

The research into the financial impacts of last Christmas amongst a GB representative sample of 2,000 British adults was carried out by the new money savings website Savebuckets.com which launches this week to enable Brits to get more for their money this Christmas.

With these alarming figures in mind, Savebuckets.com will give shoppers the opportunity to save up to 20% on their Christmas shopping. Putting consumers back in control of their spending, the site searches over 700 retailers for the best price on around one million products. The site includes a unique price checker which allows consumers to set the price they want to pay for items, notifying them when the price of a product falls to within their budget.

Marc Ames, Marketing Manager of Savebuckets.com commented: “Many Britons have struggled to pay off their credit card spending from last Christmas. With rising costs of living and interest rate hikes curbing spending power this year, it is likely that many will have to make cutbacks this Christmas. Savebuckets.com launches this week as a quick and easy way to save time and money on Christmas shopping.

“The site searches over hundreds of retailers to get shoppers the best possible deal. We rate retailers on the price of their products alone, giving shoppers the opportunity to save buckets of money this Christmas and putting them back in control of their spending.”

Further Findings

• Young spenders suffering the worst Christmas hangover: People aged 18 to 24 spent the most last Christmas on presents, food, travel, decorations and socialising (an average of £1,095 per person).
• Low income groups haunted by Christmas past: Lower income earners are the most likely to still be paying for last Christmas. Of the 43 per cent of people earning less than £35,000 who paid for Christmas on credit, 19 per cent are still paying for last Christmas, just 28 per cent having cleared their bills in January.
• Parents shouldering the costs of Christmas: The middle generation aged 45 to 54 are the most likely to have incurred debt to cover Christmas last year (49%). More than one in ten of this age group are still paying for last years Christmas (12%).

Regional Findings

• People in the South West spent the least last year (£692 per person) and were the least likely to borrow money to cover last Christmas (30%). However, they are the most likely to still be paying for last Christmas (30% of those who borrowed money).
• High income earning Londoners were most likely to borrow money to pay for Christmas last year (45%), but are the least likely to still be repaying their Christmas borrowing (9%).

Table of Regional Findings

For more information or to speak to a spokesperson from Savebuckets.com, please contact:

Jo Winser / Guy Bellamy
FD Consumer Dynamics
jo.winser@fd.com
020 7269 7236

Marc Ames
Savebuckets.com
marc.ames@savebuckets.com

Footnotes

* According to research conducted by YouGov for Zopa in Ocotber 2005, the average Briton spent £548 on Christmas in 2004.

** Research from uSwitch.com, published October 8th 2007, www.timesonline.co.uk/tol/newspapers/sunday_times/britain/article1289981.ece

Notes to Editors

Research was conducted between the 5th and 8th October 2007 on behalf of Savebuckets.com by YouGov amongst a GB representative samples of 2010 adults.

Savebuckets.com is a free to use online comparison shopping service, which will helps shoppers to find the product they want at the price they want.

The site currently searches around one million products from a wide range of shops, including high street brands and lesser known online shopping sites.

Savebuckets.com also includes a ‘My Price’ function which notifies shoppers by email when the price of the item they are searching for drops to within their budget.

Savebuckets.com is the trading name of Save Buckets Limited, a registered company in England and Wales.