Study reveals cost of 'hidden extras' at Christmas

30 November 2011 15:51:01

A cashback credit card could be useful for Christmas spending.

Britons are expected to spend more than £10bn on 'hidden extras' this Christmastime, in addition to their usual spending on presents, food and drink. That is according to American Express, which recently commissioned research on the subject. The findings indicate that even consumers who prepare a budget for the festive period are likely to spend more than they expect, meaning they should look carefully at the type of credit card they use to do their spending.

Brits to spend £10.2bn on 'extras'
The average UK adult will spend £210 on 'hidden extras' this Christmas, according to new research from American Express Platinum Cashback Credit Card. The card provider asked research firm Omnibus to survey 2,000 adults in October 2011. Researchers found that, overall, the nation will fork out £10.2bn on goods and services such as party outfits, babysitters, travel and sales shopping.

Julie Hay, head of credit cards at American Express, said: "Costs not traditionally accounted for during the festive season can mount up, whether that's to buy that little black dress for Christmas parties, or to pay for a hotel stay for a New Year's Eve celebration. Some are hard to predict, such as the 'emergency present' for an unexpected visitor or unscheduled outings with work colleagues or friends."

Many will rely on credit cards
Just 30% of respondents said they would be able to fund these 'add-ons' with their monthly salary, with others relying on savings or credit cards to make up the difference. This means that many shoppers could ease the pain by using a credit card that offers rewards for spending. One example is the American Express Platinum Cashback Card, which offers at least 1.25% cashback.

Ms Hay explained: "By using a rewards credit card to purchase your 'seasonal trimmings', savvy consumers can benefit from earning cashback on their spending, which means they can treat themselves the following Christmas or alleviate costs of the festive season next year." 

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