Be careful about Christmas spending

People do not have to spend a lot to ensure they have a Christmas to remember, it has been claimed, but many Brits rinse their accounts with the best savings rates and build up debts to pay for the occasion.

Psychologist Cliff Arnall, said that people really need to think hard about what they are spending their money on and whether the cost is worth it in the long run.

"The budgets that people unconsciously have for themselves are beyond ridiculous," he claimed.

"You don't have to spend a lot of money, because expensive gifts are often forgotten. It is the gifts that people have thought about and carefully considered that are remembered."

His comments follow a survey for Conrad Koh Samui by Opinion Matters, which revealed that it takes one in five people until March to repay the debts they accumulated to cover the cost of Christmas.

Furthermore, 80 per cent said it takes them about a month to recover from the stress of the festive period, while a quarter said it takes four months to lose the weight they put on by overindulging.

As a result, over half of the population are considering spending the Christmas period abroad, with this option most popular among the 25-34 age group.

Of those polled who had avoided the traditional festivities, a third claimed that they felt more relaxed as a result.

Mr Arnall urged people to re-evaluate their priorities and consider what is important to them about Christmas, as they may find they can save a considerable amount once the pressure is removed.

He added that parents should try not to feel pressured into buying the latest toys and Brits should avoid the inclination for one-upmanship that is common at this time of year.

"The money can be spent on different things, whether that's eating out somewhere or going away," he advised.

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2011-11-24 13:08:36 © Moneyextra.com