Are we all over-stretching our purses and wallets to pay for unnecessary festive luxuries? Vicky Shaw looks at the £24bn Christmas spending spree

THIS Christmas, UK shoppers expect to splash out a staggering £24bn on festive food, treats and gifts.

While you may say this should be interpreted as generosity, the findings, from Government-backed body the Money Advice Service (MAS), also paint a worrying picture of how many people are overstretching their purses and wallets to pay for, often unnecessary, festive luxuries.

Two-fifths (40 per cent) of the 2,000 people surveyed said they felt under pressure to put on a special Christmas for their families, while a similar proportion (39 per cent) had trouble making their budgets last over the festive season.

More than two-fifths (42 per cent) of people were happy to cut back on other areas of spending to make the most of Christmas, more than a quarter (27 per cent) got carried away.

The reasons people gave for blowing the Christmas budget are a stark reminder of how enjoying the festive season can often be a painful struggle between heart and head. For example, one of the most common answers was people worrying over the need to please loved ones and give their children the perfect Christmas.

Some also overspent because they were dazzled by the latest ‘‘must-have’’ children’s gadget, while others simply lost track of what they could and could not afford.

This tendency to ignore sensible budgeting, combined with stagnant wage growth and the ever-increasing pressure on household budgets, means it is not surprising that more than one-third (38 per cent) of people were worrying how they would afford Christmas.

Thirty-four per cent of those surveyed, equating to 17 million people across the UK, expect to start 2014 in debt simply because of their Christmas costs, and onethird – equating to 16 million – plan to pile their Christmas spending onto their credit cards. One in 40, or 1.2 million people, expect to turn to a payday lender.

If these figures leave you - understandably uneasy, here are some tips to help your rein in your Christmas budget: 􀁥 Fix your limits: List what you expect to spend over the festive season, from presents and decorations to food, socialising and transport. Keep some cash back to pay the mid-January bills.

  • Compare online prices with those offline. Shopping online can be cheaper than the high street, especially if you can find a discount voucher code.

This is not always the case though, and it’s worth seeing what is on offer in your high street. Check delivery charges to get a clear cost comparison and look out for deals which could help you build loyalty points on cards.

  • Think twice about tempting treats: Buy-one-get-one-free offers in the supermarket can save you large sums of cash.

But if special offer items will just sit going mouldy in the fridge, then you are not getting as much value as you first thought. Shopping online can cut the chances of last-minute panic buys.

  • Freeze essential items. Eat what you need from your freezer to clear space for freezable Christmas essentials.

Buying food earlier and freezing it, rather than raiding the supermarket in the final days before Christmas Day as items fly off the shelves, will help you budget and let you build up your stock gradually.

Keep a list of what you have frozen and remember to defrost it all in time.

  • Get crafty – making cakes, cards and decorations adds the personal touch as well as often working out cheaper than shop-bought items. Cut up last year’s Christmas cards and use them to make decorations or gift tags.
  • Think about all your options before taking out credit.

Stores may offer you cards with tempting offers and instant discounts attached, but bear in mind the interest rate they will charge. As with payday loans which offer quick access to cash, if you use them make sure you repay your debt on time and in full to avoid the costs escalating.

  • Plan ahead when sending Christmas cards. Sending a card second class will cost 50p rather than 60p for a first class stamp. Sending your Christmas cards second class before the UK domestic deadline of December 18 will leave you more cash in your Christmas budget.
     
  • Make a New Year’s resolution to start saving earlier in 2014. Saving small amounts regularly from January could make a big difference.
     
  • More advice to help people have a savvy Christmas is available by using the Money Advice Service’s Christmas Money Planner at money adviceservice.org.uk