UK public shun Christmas credit in favour of cash budgeting

Posted on: 09/12/2011

New figures have been released this week which show a big increase in the number of cash withdrawals across the UK this month, suggesting that more Britons are relying on cash over credit for their Christmas shopping.

Cash machine provider LINK said there was an 11 per cent increase in the number of cash withdrawals in the week ending December 4, 2011 when compared with the same period last year. The largest year-on-year increases were seen on November 30 and December 1 when there was an astonishing 25 per cent increase in the number of cash machine customers.

LINK chief executive John Howells said: "The most common things for people to spend their ATM cash on are entertainment, food and groceries and, at this time of the year, items like clothes, DVDs and games, which are all key areas for pre-Christmas spending."

With many trying to be more frugal during the festive season, it is likely that shoppers are trying to avoid the temptation of overdrafts and credit cards and sticking to a simple cash budget in an attempt to save money. As well as a rise in cash withdrawals, there is also evidence to show that Britons have begun a huge effort to repay debts, with the Bank of England revealing that homeowners paid back £9.15 billion more on their mortgages than was taken out in the three months to the end of June.

We at Cash-is-Cool can only hope that this cash craze continues and that more and more British consumers will realise the benefits of simple cash budgeting over confusing credit agreements and costly overdraft deals.

The benefit to shops will be evident as well, with queue times likely to be shorter due to more cash payments (card payments statistically take over 12 seconds longer than cash payments).

Are you relying on a cash budget to see you through Christmas this year? Perhaps you've had enough of seemingly never-ending debts and want to make a cash-focused change to your finances? We want to hear from you! Comment below and let us know your thoughts.

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