The credit crunch is going to have a big impact on Christmas spending this year, warns the Consumer Credit Counselling Service (CSSS).
With tighter lending criteria, many people will find it harder to get credit resulting in a reliance on other, "more expensive" forms of credit, according to CSSS spokesperson James Ketchell.
"One Christmas doesn't make a difference but it might be the tipping point which pushes people over the edge," he said.
His comments follow the news that many consumers who take out small loans to cover the cost of Christmas will feel the impact of increased interest rates, with the average rate reaching double figures.
Mr Ketchell warned that people who are relying on loans or credit cards should "reassess what's important".
People should ideally start saving for the festive period at the start of the year, he added.
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