Bad credit loans: 40 per cent of people cut Christmas spending

A poll has revealed that 40 per cent of people, including customers who use bad credit payday loans, will be reducing their Christmas spending as a result of the government's budget cuts.

Additionally, nearly 300,000 people, three per cent of those surveyed, claimed that they would now be cancelling Christmas altogether.

Money.co.uk's survey prior to the government's announcement of the budget cuts revealed that consumers were planning on spending 43 per cent more than in 2009.

However, a more recent survey showed that this has now changed and Christmas budgets have shrunk by 32 per cent to an average of £485.

The survey also revealed a £13 billion shortfall between what people plan to spend and how much they have actually saved, which could result in more people looking to bad credit payday loans to get them through.

Recent figures show that one in seven people borrowed money to help finance Christmas in 2009.