Christmas may be a time for celebration, but it often incurs a heavy cost to families, and research has found that nearly ten million consumers in the UK will take on additional debt to cover expenses during the festive period. The study by Moneysupermarket.com found that just over half (57 per cent) of people have saved up enough money for Christmas this year, six per cent lower than in 2010.

The findings, which could encourage families struggling with mortgage payments to use buyers like Gateway Homes to downsize to a smaller house, revealed that seven in ten people expect to put their Christmas bills on a credit card this year. Meanwhile, one-fifth of those borrowing more said they planned to use their December wages to fund their spending, leaving them without the means to meet their existing debt repayments.

Tim Moss, head of loans and debt at Moneysupermarket.com, said: “This year has been incredibly tough for consumers, with the rising cost of living really hitting the nation’s wallets hard.

“So really, it comes as no shock that such a high number of people will be taking on debt this festive season, particularly as Christmas is a time when people generally increase their spending.”