'Tis the season to have less lolly

The average celebrations over Christmas can cost over a third of the December pay cheque, according to Fool.co.uk, the personal finance website.

Five per cent of the population admit to spending over £1,000 to ensure that they celebrate in style.

Families with children spend about £80 more than all adult households and women spend about 20 per cent more than men.

The survey also revealed, however, that one in seven people is creative enough to give homemade gifts.

David Kuo, head of personal finance at Fool.co.uk, says: "Spending two percent of our annual income on one day’s jollies can give our finances a proper stuffing unless we have budgeted for it carefully.

"If you must use credit, don’t fall into the trap of buying now and paying through the nose for it later. Nobody wants to be seen as Ebenezer Scrooge. Without proper budgeting, January could be haunted by the ghost of Christmas past, with credit providers tucking into our leftovers with some relish."

Homeowners should also check that their insurance policies cover any expensive gifts they receive.

Some policies might need updating if Santa brings the latest top-of-the-range gadgets.

22/10/2007 11:46:42