While on average 16% of people in Europe take out a loan to buy Christmas presents and food because it brings the family closer and is expected of other family members, this practice is uncommon in the Baltics, according to the European Consumer Payments Report 2021.
In Latvia and Lithuania, half the population or 8% borrow money for Christmas celebrations, but in Estonia only 4%, which is the lowest indicator in Europe.
People in Ireland, Greece and the United Kingdom need the most additional funds, with one in four respondents taking out a loan.
27% of Europeans aged 18-37 say they will be more indebted than ever after Christmas this year, with a majority of respondents saying their financial situation has deteriorated during the pandemic. As the population of the Baltic States rarely borrows for Christmas presents and celebrations, the holiday affects the total amount of debt only to about every tenth respondent in Latvia and Lithuania, and 6% of the Estonian population.
“The study shows that the Baltics are relatively financially responsible and do not make additional commitments to provide Christmas presents and meals just because they are traditionally expected to do so, but in practice such expensive parties cannot be afforded. In Europe, families with children borrow the most money. , this is also due to the different traditions of different countries in celebrating this holiday – we are more modest in terms of giveaways, and thus do not bear the additional financial burden, which is difficult to get rid of afterwards. responsible celebration is very important, “explains Ilva Valeika, General Manager of Intrum in the Baltics.
The survey shows that younger Europeans, high-income respondents and families with children feel more and more uncomfortable about spending unnecessary sales before Christmas every year. On average in Europe, 36% of the population gave this answer, compared to 41% in the so-called millennials and the Z generation. In Latvia, one in four or 25% of the population is worried about unjustified spending during Christmas.
One in three Latvians (34%) believe that Christmas after a pandemic will no longer be what it used to be, which is slightly less than the European average (37%). Our neighbors in Lithuania (34%) and Estonia (29%) have a similar opinion, while in southern Europe, Spain, Italy and Portugal, as many as half of respondents agree. More changes in Christmas celebrations are expected by low-income Europeans, families with children and those whose financial situation has deteriorated during the pandemic.
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