Holiday spending rises despite tougher finances
In many places, the period of the year marked by celebrations also marks the peak of household spending. Even as economic conditions tighten, a portion of the population remains committed to spending what is needed for gifts, meals, outings, and gatherings with friends and family. This pattern often pushes family budgets to their limits during the holidays.
In the Community of Valencia, as much as 31% of consumers report borrowing heavily for gifts and food during the holidays. The motivation cited is the desire to preserve traditions and keep family ties strong, with some viewing the holiday spending as a duty. This trend aligns with the European Consumer Payments Report from Intrum, which shows a higher strain locally than at the national level. Nationally, 24% of people admit to over-indebtedness, a figure that sits at 16% across Europe.
Experts from recovery services note that such behavior can push households to seek remedies like deferred payments or new loans, which poses risks to long-term financial stability.
If someone is a heavy Christmas shopper, the topic certainly deserves attention. In Valencia, 22% of respondents expect to owe more than usual after the holiday period ends. The national average sits at 24%, three percentage points above the European average of 21%.
Furthermore, 53% of Valencians believe Christmas has brought a worse financial situation compared to a year ago, a view shared by more people than in the national average, signifying that the financial squeeze is felt across the country.
La Rambla de Alicante was closed to traffic for Christmas shopping. Rafael Arjones
Intrum’s report emphasizes the need for Spaniards to adopt smarter money management this Christmas, avoid debt, and plan ahead. The current economic climate underscores the importance of saving and having a safety net for financial contingencies.
Many households see these holidays as an opportunity to reassess how money is spent, with the goal of starting the new year in a stronger financial position and avoiding the heavy January costs that often follow the festive period.
In 2022, the euro area saw a notable tendency to pay cash for purchases. Across Europe, attitudes toward debt varied by country: Greeks showed the highest acceptance of debt during holidays, with 34% of those surveyed indicating tolerance for excessive borrowing, followed by 29% in Ireland. By contrast, Estonians were the most cautious, with only 6% reporting reliance on excessive credit.