Brits cut Christmas spending after debt warnings

Brits are being more savvy with their spending this Christmas, following advice warning against using credit cards and loans to fund the festivities.

UK website Consumer Intelligence recently showed that 55% of Brits will use credit cards to fund Christmas this year, and 3% said they would take out a personal loan.

But research by NS&I Savings shows that people are planning to celebrate the festivities resourcefully, as a third are making their own presents and cards, saving an average of £108.

And 65 per cent of people have agreed with family or friends to buy fewer presents this year.

Tim Mack, savings spokesman at NS&I, said: "This is not about people dreaming of a 'tight Christmas' but about each of us doing a bit more planning and being a little bit more enterprising over the next four weeks."

He added that planning a budget and sticking to it would help people avoid a "financial hangover" in the new year.

Posted by Ruth Bradshaw