One in five Scots plan to borrow money for Christmas

• Borrowers to use credit cards, buy now pay later or loans from friends or family. 
• It will take a quarter of them longer than six months to pay it back and some will need over a year, meaning their debt could begin to spiral. 
• One in three of those planning to use credit will take out more than £300. 
• Money and Pensions Service says “think it through before you borrow” for celebrations.

The survey of 255 adults in Scotland, commissioned by the Money and Pensions Service (MaPS), shows that one in five (21%) are likely to borrow or use credit for upcoming holidays like Christmas and Hanukkah.

Among those, half (48%) said they’re likely to use credit cards, while a third (37%) would use buy now pay later and one in four (26%) would opt for an overdraft. One in seven (15%) said they’d turn to friends or family.

Some are considering using high-cost credit, with one in ten (9%) saying they’d use payday loans and 7% going for pawnbroker loans.

When asked how much they think they’ll borrow, over half (56%) said between £101-£300. One in four (24%) thought £301-£500 and one in 20 said more than £500 (6%).

The research also reveals how long they think it’ll take to pay back. One in five (17%) said 7-12 months, with a further one in ten (11%) saying longer than a year. 

This year, MaPS is asking those who plan on using credit to pay for Christmas or other religious and cultural holidays to “think it through before you borrow.” This gives them time to assess their options and ensure they have a clear plan to repay the credit they take on.

MaPS is also urging people who are already struggling to use its MoneyHelper service, which offers free guidance on credit and finding debt advice.

Allison Barnes, Scotland Manager at the Money and Pensions Service, said: 

“The holidays are a wonderful time of year, but they can also make people feel pressured into spending much more than they can afford. With many households across Scotland already feeling the strain, it’s unsurprising that millions are looking to credit to fund the celebrations.  

“What’s particularly worrying is that some will still be repaying when next year comes around. On top of the stress it can cause, this often involves using short term products for the sort of expensive, long-term borrowing they weren’t designed for.

“Credit is a useful tool, but it’s crucial to think it through before you borrow. If things are getting out of hand, or you start needing credit for essential costs, it might be time to seek help. Whatever your circumstances, we have dedicated resources on our free MoneyHelper service and I’d urge you to take a look today.”

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• This survey was conducted among 3,016 people in the UK aged 18+ in October 2023. It is nationally representative.  
• According to the ONS, there are approximately 53.2 million people aged 18 or over in the UK.