This year, 11.2% of Poles intend to take out a cash loan or borrow from a bank, a non-bank institution, or friends and family to organize Christmas Eve and the holiday celebrations. Meanwhile, 83% of Poles will not do so, and 3.6% are still undecided. Young people, those earning over 9,000 PLN, 7,000–8,999 PLN, or below 1,000 PLN, are the most likely to take on this debt. This trend is most common among residents of the Silesian, Warmian-Masurian, and Łódź regions. According to survey participants, 12.9% of Poles actually borrowed money for the holidays last year, while 84.3% said they did not. Additionally, 2.8% do not recall how it was the previous year.
The report titled “Poles’ Holiday Debt” by UCE RESEARCH and the Offerista Group shows that 11.2% of Poles plan to take out a cash loan or borrow from a bank, non-bank lender, or friends and family to organize Christmas this year. Meanwhile, 83% will not borrow, and 3.6% remain undecided. Furthermore, 2.2% of respondents do not plan to celebrate the holidays at all.
“In my view, just over 11% is not a high figure. It’s lower than in previous years, according to various market studies. Two or three years ago, research showed that more than 20% of people took on debt to organize Christmas. The situation is gradually changing. Poles are moving away from the old maxim ‘Live beyond your means to show off.’ They are avoiding unnecessary debt, and I believe this is a very positive trend,” says Robert Biegaj, co-author of the study from the Offerista Group.
The report’s authors note that some people may feel ashamed of their financial struggles and the need to borrow money for the holidays. This could slightly “distort” the result, but the anonymity of the responses should mitigate this effect.
“There is a high likelihood that banks and non-bank lenders will not profit much from holiday borrowing this year, as Poles are becoming more cautious about taking loans. They will likely turn to family or friends first, unless embarrassment stops them. Only then might they consider non-bank lenders, where formalities are completed quickly, often without thorough income or document verification,” explains Robert Biegaj.
The report highlights that borrowing from non-bank lenders is typically more expensive than borrowing from banks. “These are the consequences of borrowing quick cash. You have to repay more than you would with a bank loan, which typically involves longer and more complex formalities, though this is changing. Banks are becoming quicker and are more numerous than non-bank lenders. They also have a better reputation, which matters,” adds Biegaj.
Young People and Regional Trends
When looking at age groups, those aged 25–34 (15.3%) and 18–24 (15%) are the most likely to borrow. “Young people often do not perceive significant risks. They usually have smaller savings and may borrow thoughtlessly or beyond their means,” explains Biegaj.
Poles from the Silesian (15.1%), Warmian-Masurian (14.3%), and Łódź (13.4%) regions are the most likely to borrow for the holidays. “Residents of the Silesian region have historically been among the top borrowers and debtors. Meanwhile, the Warmian-Masurian and Łódź regions are characterized by increasing unemployment, which likely heightens the need for financial support,” note UCE RESEARCH analysts.
The report also indicates that borrowing for the holidays is most common among those earning over 9,000 PLN (17.7%), 7,000–8,999 PLN (16.1%), and below 1,000 PLN (15.8%). “Paradoxically, it’s not always the lowest earners who borrow the most. In my opinion, it’s often the opposite. Higher earners tend to have greater, sometimes unjustified, needs. Financial institutions are also more willing to lend to them because they are confident of repayment and profitability,” comments Biegaj.
Biegaj adds that low-income consumers often have no choice but to borrow for holiday celebrations. “These individuals typically borrow from non-bank lenders, where debt servicing is much more expensive. While loans are more readily granted, this often leads to further financial trouble. It’s common for holiday debt to be repaid with another loan, creating a cycle of debt,” explains Biegaj.
Last Year’s Borrowing Trends
Respondents were also asked if they borrowed money last year for Christmas preparations (e.g., gifts, shopping, or travel). 12.9% said they did, while 84.3% said they did not. Additionally, 2.8% did not remember.
“This indicates that more people borrowed for the holidays last year than plan to do so this year. However, the difference is minimal. The slight year-on-year decline doesn’t show much. The comparison is based on the same individuals’ declarations, not results from two separate studies. This slight drop in borrowing may be due to lower inflation compared to the previous year and a slight improvement in Poles’ financial situation,” concludes Biegaj.
Methodology
The report “Poles’ Holiday Debt: December 2024” is based on a specially conducted public opinion survey. The study was carried out between December 5-6, 2024, using the CAWI (Computer Assisted Web Interview) method by UCE RESEARCH and the Offerista Group, with a sample of 1,019 adult Poles aged 18-80.
Source: Manager Plus
