Where We Stand
For months on end, food inflation has been stuck above 10% per month. In fact, for the entire first half of 2023, it was between 15 - 20% per month. Combine that with the aforementioned surge in energy prices and the result, according to Barclaycard, is that nearly 50% of UK residents plan to cut back on their spending during the festive season this year.
That means fewer gifts and a lot less money spent on socialising during the holiday season.
What Can Be Done?
Besides buying into the government’s fantasy that everything is alright, is there anything one can do to lessen the bite of higher prices and salvage the festive season? We think so, and below we’ll provide some helpful tips on how to have a festive holiday in spite of high inflation.
Tip #1: Don’t borrow money unless you absolutely have to
Everyone wants to deliver for the people they care about at holiday time. So when money for gifts and the like is more difficult to come by there are those who will look to borrow in order to ensure there’s something nice under the tree. We totally understand and respect that.
We would, however, strongly suggest you be careful how much you borrow and who you borrow from. Using credit cards to bridge the cash gap is common enough. But remember, once the holidays are over the bill is going to come due. So use restraint. For example: instead of a 100ml bottle of perfume, get a 50ml one.
And be particularly wary of payday loans. In 2018, the government started clamping down on this type of short-term, high-interest lending. And not a moment too soon because some of these predatory lenders had been charging up to 5,000% interest!
Today, there are less than 40 authorised payday lenders left in the UK. And while they no longer charge 5,000% interest we would strongly advise steering clear of them anyway.
