Debtors saving cash on Christmas

Britons are planning on spending more prudently this Christmas, with half only buying presents for family and close friends, suggesting that a fear of falling into too much debt is making people pull their purse strings tighter.

According to research by LV=, pre-Christmas sales will be attracting 8.7 million people in a bid to save some money, despite the fact that total predicted expenditure for the festive season is £13.5 billion.

Managing director of the home insurer John O’Roarke noted that 2009 has been a “tough year financially” for many but that Christmas is not considered a time to “completely cut back”.

People are “opting for alternative ways of saving some money,” he remarked.

LV=’s figures support recent findings from Abbey Savings, which discovered that Britons are also willing to reduce the amount they socialise over this period, with 23 per cent happy to spend less on meals, drinks and parties.

By Sarah Adie