The proportion of people planning to splash out this Christmas has shrunk sharply compared with last year, research suggests.

On average, households expect to spend £596, down from £774 last year, Yorkshire Building Society found.

The proportion planning to spend more than £1,000 has plummeted to 15%, down from just over half (51%) last year.

More than half (55%) of people in the latest survey said they feel stressed about their finances and nearly a quarter (24%) plan to use a credit card to cover the cost.

Among those borrowing, expectations around when they will clear their debt vary widely.

Around half (51%) expect to clear festive debt within three months, while a quarter (24%) anticipate taking up to a year.

Yorkshire Building Society said more than 12 million current account

See Full Page