Credit cards bear brunt of impulse sales shopping

28 December 2006

As many as 38% of purchases in the post-Christmas sales will be made using credit cards, a new study from Halifax card services has found.

The study unveils worrying attitudes towards sales shopping, revealing that 78% of sales shoppers buy on impulse instead of targeting specific items, while another 78% fail to set themselves a budget.

The average spend for 38% of New Year sale shoppers totals at least £50 - and over one-quarter of shoppers (26%) will overspend on their budget, adding on between £50 and £100.

Poorly planned impulse spending could hit shoppers hard later in 2007 if it is funded on credit.

And the willingness to shop without a budget could reflect a worryingly short-term focused attitude to finances among many UK consumers.

Peter Jackson, head of products at Halifax, urges consumers to be clear about the state of their finances: "It makes sense to ensure you know exactly where you stand before you buy."

He also advised consumers to beware buying under pressure in the sales: "We often buy in haste ... as a result of the pressure to find a bargain."