Press Release

TWO THIRDS OF FAMILIES PLAN TO CUT BACK ON CHRISTMAS SPENDING AS UNCERTAINTY REMAINS ABOUT INCOME FOR 2010

New Equifax survey reveals the concerns that UK consumers face as they plan for the festive season

London, 24th November 2009 - According to the latest research by leading instant online credit information provider, Equifax, UK consumers are definitely planning to rein in spending this festive season.

A survey* conducted mid November has revealed that nearly two thirds (64%) are planning to cut back on their spending this Christmas, with 56% expecting it to take them up to 3 months to pay off their festive debts. This is perhaps not surprising when put in the context that over half (58%) did not get a pay rise this year and 64% are either not expecting to get one next year or are currently uncertain if their employers will be able to afford an increase.

"It's no surprise that families are going to be more careful how they spend this Christmas" said Neil Munroe, External Affairs Director, Equifax. "Financial pressure throughout this year has been considerable, with more than half of respondents (54%) saying that the greatest impact on their finances this year has been an increase in monthly outgoings. This is despite the incredibly low interest rates we have seen held for much of this year and inflation at very levels too."

The difficulty in getting new credit, which has become the 'norm' for the UK credit market, seems to have been a major issue for at least 1 in 5 consumers this year, according to the Equifax survey, and will, no doubt, be a factor as they try to work out how they can afford the gifts, food and drinks for this season's festivities. Indeed, over two thirds admitted to changing the way they have used credit during this year - perhaps in response to the changing dynamics of the consumer credit market as well as their own financial confidence.

"With more than a third (34%) worried about job security for 2010, this Christmas may be a slightly more sober affair for some families" continued Neil Munroe. "But despite this cautious approach, there does also seem to be a positive outlook for next year, with over half (58%) aiming to reduce their debts in the next 12 months and nearly the same number (44%) planning to save more."

When it comes to the regions, the Equifax survey shows that it's Londoners and the Scottish who are the most likely to cut back their Christmas spending this year with 71% of consumers in both areas saying this is their plan, compared to the national average of 64%. And consumers in the South East and the Midlands top the league table for taking up to three months to pay off their Christmas debts at 61% and 60% respectively. However, worryingly 6% of consumers in the North East, North West and Scotland said they are still paying off last year's Christmas debts!

Scottish workers appear to have suffered the most when it comes to a pay rise this year with 65% saying this didn't happen for them, compared to just 54% in the North East. And the Scottish are the least confident about getting a pay rise next year too with 75% certain they will not get an increase or unsure at this stage.

"To keep on top of finances and expenditure - especially during the festive season when there is probably more pressure - we strongly advise consumers to get a copy of their Equifax credit report", concluded Neil Munroe.

"This will not only show them their current credit commitments but also enable them to make sure they've got the best possible credit rating for their circumstances if they do want to take out new credit now or in the new year. It's not a difficult process - and our expert team of advisors will help consumers if they have any queries or questions regarding the information on their credit file."

The Equifax Credit Report, with the facility to access credit information for the first 30 days free, is the ideal solution. Designed to help individuals understand their credit file and see what lenders see to assess new credit applications, the Equifax Credit Report also includes expert tips and advice to help consumers take the right steps to manage their finances and navigate through life's challenges.

If the customer does not cancel before the end of the 30 Day Free Trial, the service will continue at £6.99 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.

ENDS

*The Equifax survey was conducted mid November 2009 with a total of 932 respondents.

For interviews with Neil Munroe please contact the Equifax Press Office: Wendy Harrison, Cecile Stearn, Elinor Puzey or Louise Fowler on 020 8977 9132. louise@harrisonsadler.com