In a recent survey conducted by Ipsos for the Czech Banking Association, findings indicate that a mere three percent of the population is contemplating borrowing money for Christmas gifts this year. Notably, individuals aged up to 26 seem less averse to this practice, with two-fifths expressing a desire to take out loans of up to five thousand crowns, and nearly a third considering loans of up to ten thousand crowns.

Filip Hanzlík, the deputy executive director of the association, notes a general trend of skepticism, caution, and reduced willingness to spend or borrow for non-essential items when it comes to Christmas presents. This represents a significant shift from 2021 when one in ten individuals contemplated taking out a loan for gifts, if not deeming it a good idea outright.

Interestingly, among those contemplating loans for gifts, a third do not consider their ability to meet repayment obligations, showing a lack of concern. In contrast, around thirty percent express fear about potential repayment challenges, and six percent view it as a substantial problem with an uncertain solution.

The primary motivators for taking out loans are impatience and an aversion to waiting or saving, alongside the allure of potential discounts on purchased goods. Borrowing patterns indicate a focus on items such as children’s toys, apartment furnishings, and consumer electronics.

The survey estimates that the average household will spend approximately 12,000 crowns this Christmas, a decrease of 1,500 crowns compared to the previous year. Gift budgets typically range from 3,000 to 5,000 crowns, with a fifth of respondents planning to spend between 5,000 and 10,000 crowns. Additionally, nearly a third of participants aim to allocate up to three thousand crowns for food and drink. Notably, more individuals express a desire to economize on decorations, with budgets capped at 500 crowns for this category.

Article by Prague Forum