The warning not to over-spend has come from the Finance & Leasing Association and the Consumer Credit Counselling Service, which noted that Christmas is a time when a lack of restraint can cause financial problems.
Last year saw 11 per cent more being spent on
They suggested that one solution is to avoid splashing out on credit, while those who do so should shop around for the cheapest deal before splashing out.
Britons will spend 35 per cent less on presents this Christmas than they did ten years ago, according to research published by Saga last week.
Its study found that the average amount dedicated to gifts will be £435, whereas the amount spent per person in 1999 would be £666 in today's money.