Brits spend year’s salary on Christmas during working lives

Brits will spend a total of £20,072 on Christmas presents over the course of their working lives.

Figures compiled by the National Employment Savings Trust (NEST) and MoneySupermarket show that people are parting with an entire year's gross salary for the average earner in the UK.

Individuals are planning to purchase £445 worth of goods this year, which is up from the previous year's figure of £437. Spending was also found to peak when people are between the ages of 35 and 54.

However, 77 per cent of respondents said they are concerned about the cost of the festive period, while one-third are very or extremely worried and 52 per cent admitted they spend more than they should.

If people are overstretching themselves, then they may face a financial hangover in the new year. Should this problem spiral out of control, then debt consolidation may be the only option open to them.

A debt management plan offers people who owe at least £1,500 to more than one creditor the chance to bring their circumstances under control. It means people will only face one affordable monthly payment, while consumers will be left with enough money to live on.

Helen Dean, managing director of scheme development at NEST, said: "It's shocking that it will cost many of us the equivalent of a full year's salary over our working lives. No wonder spending at this time of year is such a concern for so many families.

"Shaving just a little bit off the annual festive bill and focusing on enjoying time with family could mean more peace of mind now and big savings over the long term."

Clare Francis, financial expert at MoneySupermarket, noted people should always be looking to manage their finances so they do not face any unforeseen expenses. With only 37 per cent of individuals using their disposable income to pay for Christmas, she added too many consumers are turning to credit and store cards.

By Amy White