DUBLIN, Ireland (11/29/11)--Because of holiday spending, roughly one in three people in Ireland will go into debt, according to a new survey conducted by the Irish League of Credit Unions.
Figures from the league indicate that 38% of those surveyed will borrow to finance gifts, food and other seasonal expenses (thejournal.ie and irishtimes.com Nov. 21).
Respondents said they would spend an average of $749 during the holidays. For 18% of respondents that figure was between $933 and $1,333. The average spending on "Santa" presents per child is nearly $219.
That level of spending would put 38% of people in debt, with one third saying it would take two to three months for them to get out of debt, and 12% saying they would need four months or more to recover, the league's survey said.
Also, 77% of respondents said they felt better about their financial situation this year than they did last year.
Ireland's survey comes on the heels of the 2011 Consumer Federation of America (CFA)/Credit Union National Association (CUNA) holiday spending survey, which found that spending continues to improve following the great recession, but spending plans are still considerably below where they were before the recession (News Now Nov. 22).
This CFA/CUNA survey announced Nov. 21, indicated 8% of respondents plan to spend more on gifts and holiday items, with 41% of respondents saying they would spend less this holiday season. The results are nearly identical to the 2010 consumer predictions, when the CFA/CUNA survey found that one in 10 consumers would increase their holiday spending, and 41% at that time said they would cut their holiday spending.
To read the News Now article about the CUNA/CFA holiday spending survey, use the link.