Nov 28, 2007
SHOPPERS in Wales look set to spend as much as ever on Christmas this year – ignoring growing warnings of debt and today’s slowing economy, the Western Mail can reveal. With four weeks’ shopping left until Christmas Day dawns, figures out today show the average adult now owes £33,000 through mortgages, credit cards and loans, compared with £17,000 in 2000, but is paying back less than at any time so far this century. Falling house prices, fears of an international recession, rising mortgage repayments, which could see some homeowners facing monthly hikes of around £140, plus rising fuel costs and utility bills have all been cited as reasons why people may rein in their generosity this Christmas.
But experts yesterday said consumers in Wales, faced with a lifetime of debt from their teens, are now used to a debt mindset, while traders confidently predicted they would not face any drop in business levels that have risen steadily for years. Many will pay for Christmas on credit cards. A new report released today by business advisory firm Deloitte claims 28% of Welsh consumers will use credit cards to pay for most of their Christmas expenses, the highest level in the UK.
Robin Croft of the University of Glamorgan’s Business School said, “There is a whole generation of young people who have been through higher education with student loans. [Debt] is a way of life.” The lecturer said the mindset of such shoppers was, “You’re going to be in debt for 30 years so get used to it – what’s another £1,000? Apply here for Christmas Loans.
Resources: http://icwales.icnetwork.co.uk |
