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Almost three quarters of Brits will pay for Christmas on the ‘right now' this year, despite the effect of recession on household budgets, a warning to those who are still spending beyond their means.

According to a study commissioned by money.co.uk, 30m British adults are set to start 2010 staring at an £8bn hole in their collective household finances.

The research found that, whilst 31% of adults are worried about paying for Christmas, just 15% have made an effort to spread the cost over the course of the year. The rest will fund their share of the nation's £11bn Christmas splurge using a combination of credit cards, savings and ‘money available at the time'.  Meanwhile 4.7 million adults admit that they are still paying off debts from last Christmas.

The reliance on paying at the last minute could see many families stretched to the limit financially. If current trends continue, each household will spend close to £500 on food and presents, even though average disposable income per family per week stands at just £164.

As a result, it is likely that many households will feel the January pinch even more keenly than usual, with the Christmas spending hangover combining with winter fuel costs and the long wait for payday adding up to a grim start to 2010.

Chris Morling, managing director, money.co.uk says: "There is no reason at all why families across Britain should not have a wonderful Christmas this year, but you have to worry about the effect all this last minute spending will have in January. Lots of people are likely to be very short of cash going into the New Year, which would not make for a great start to 2010."

The last thing you want to do is start 2010 as most adverse borrowers began 2009. Try and spend within your means this holiday season, making sure you are that much closer to the black next year.

SOURCE: Money.co.uk, 30/11/09

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