More than one in five of those who were previously given vouchers as Christmas presents have yet to use them, according to a consumer watchdog.
The annual Christmas survey from the Competition and Consumer Protection Commission (CCPC) also suggests people are expecting to spend only slightly less this year than in 2024 despite the enduring cost-of-living crisis.
Almost two-thirds of those surveyed said they had received at least one gift voucher last Christmas.
However, 22 per cent of those who had been given such a gift had yet to cash it in.
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“Our research shows how popular vouchers are as gifts, but if they’re not used, they’re a waste of money,” the CCPC’ s director of communications, Grainne Griffin, said.
“We are encouraging consumers to use gift vouchers as soon as possible, and if you’re thinking of giving someone a voucher this year, maybe consider if they would prefer cash – it comes with fewer terms and conditions.”
According to the research, consumers expect to spend €1,163 this Christmas compared with €1,177 in 2024, a decrease of €14.
The 45-54 year age group expected to spend the most, with the average expenditure coming in at €1,465.
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The survey of just over 1,000 adults also pointed to substantial differences between family units – households with children are set to spend an average of €1,601 compared to €995 in those without.
“From our research it appears that consumers are taking quite a sensible approach to Christmas spending” Ms Griffin said.
“While costs have risen, most consumers don’t plan to spend any more than last year.”
However, she warned that it would still be “easy for spending to get out of control at Christmas, and the price increases can hit particularly hard at this time of year”.
She advised consumers to “plan carefully; list everything you’re going to have to spend money on for Christmas – presents, food, drink, nights out, travel – and then look at your sources of cash. Think about how many pay-days you have left before Christmas. Will your savings and wages cover your costs? If not, have a look at where you might be able to cut back.”
The research suggests that 19 per cent of people plan to borrow to cover Christmas costs, with most of these planning on using a credit card.
It also points to gender discrepancies, with three-quarters of all women starting their Christmas shopping before December, compared to half of all men
“We’re glad to see that the numbers borrowing to cover Christmas haven’t increased on last year. However, we know that people spend more than they need to on credit by using the wrong products,” Ms Griffin said.
“Credit cards are only a good choice if you can fully clear your bill in January, otherwise they can be one of the most expensive forms of borrowing. If you need to borrow, consider a personal loan from a bank or credit union. Avoid moneylenders.”
The research also highlighted the use of buy-now-pay-later (BNPL) services, with almost a tenth of 25-34 year-olds planning to use the system to meet Christmas expenses.
“We’re glad to see that overall numbers planning to use BNPL appear low, but there is a risk that far more people will use it without planning to,” she said.
“It’s an option presented at checkout for home goods, clothing, electronics and even groceries and takeaways, and it can be very tempting to simply put off paying for a while.
“It is a form of borrowing and missed payments incur fees that can mount up quickly; it can be a lot of hassle for something that seems convenient at first.”
