Britons hoping to have debt-free Christmas

People expect to spend an average of 391 on the festive season this year, 28 less than they spent in 2009, according to the Consumer Financial Education Body.

Around 37 per cent said they planned to set a Christmas budget and stick to it, up from just 19 per cent in 2005. Twice as many people – 16 per cent – said they would give second-hand items as gifts as five years ago.

Six out of 10 said they would post their Christmas cards early so that they could save money by using second class stamps, something only 40 per cent of people did in 2005.

More than half of those surveyed also said they would cut back on food costs by buying supermarket own-brand products, and 60 per cent said they would try to make leftovers into a new meal.

But 42 per cent admitted they had not taken steps to try to spread the cost of Christmas through the year, such as saving money on a regular basis or buying items in advance.

One in four people also said they did not care how much Christmas cost, as they were determined to enjoy themselves.

A third of people claimed they could fund the cost of Christmas from their December pay packet, but 15 per cent admitted they would need to borrow money and 6 per cent said they did not know how they would pay for it.

Tony Hobman, chief executive of the Consumer Financial Education Body, said: "It's good news that so many people are being savvier with their money – taking a leaf out of days gone by and adapting their lifestyle to make the most of their money.

"But it's worrying that so many people are unsure how they'll fund Christmas and as many as 16 million intend to fund it with a single month's income."