Brits are desperately trying to cut the cost of Christmas with nearly one in three generating extra income by selling items on Vinted, Depop and eBay, research from Nationwide shows.
It comes as Nationwide offers customers switching to one of the building society’s main current accounts £175, with joint account holders potentially receiving £350 to move from their existing provider if they switch a sole and joint account.
Nationwide’s poll of 2,000 people shows that nearly a third (32%) say they are selling items on second-hand websites like Vinted, to generate additional income. And more than one in four (26%) will look for presents on second-hand websites to help reduce costs at Christmas.
Despite tentative signs that the cost-of-living crisis is beginning to ease, many people are feeling the festive pinch. Seven in ten (70%) are more stressed or anxious about their financial situation this Christmas, compared to last year, with 39 per cent feeling stressed or anxious about meeting the financial demands of Christmas. Those needing to borrow money to cover Christmas will do so for 42 per cent of their total spending, on average.
The research highlights that with an average bill of £813 at Christmas, many are looking to spread costs. Around two in five (39%) started buying presents earlier, while a quarter (25%) use payment instalment schemes (e.g. Buy Now Pay Later). However, despite spending more on festivities this year, over 85 per cent of consumers say they will still treat themselves at Christmas.
The costs, broken down, include:
- Presents: £254 – 28% say they will spend more on presents this year than last.
- Food: £137 – 34% will spend more on food this year than last year.
- Entertainment: £108 – 30% will spend money on things like Santa visits, family pyjamas and Christmas Eve boxes.
- Travel: £105 – 25% are set to spend more on travel this Christmas.
- Alcohol: £90 – 23% will spend more on alcohol this Christmas compared to last year.
- Treat yourself – consumers will spend an average of £119 on themselves this Christmas.
The £175 switching incentive from Nationwide could be used to cover over a fifth (22%) of average Christmas spend if someone switches to one of Nationwide’s main current accounts: FlexPlus, FlexDirect or FlexAccount.
Marta Edwards, Head of Current Accounts at Nationwide said: “We want to give people lots of reasons to join Nationwide and then stay with us. While our offer of £175 if people switch their main banking relationship to us may ease some of the financial pressures at this time of year, our current accounts are not just for Christmas. With a range of additional benefits available, including our £100 Fairer Share Payment to eligible members and our leading Flex Regular Saver product, we’re sure that people switching to us will quickly see the benefits of being part of a modern, member-owned organisation.”
Switching to one of Nationwide’s three main current accounts would also give people access to the Society’s Flex Regular Saver product, offering 6.5% AER on monthly deposits of up to £200 per month.
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