'Tis the season to be frugal

Fifty five per cent of the UK adult population are planning on reducing their spending this Christmas, with 27% of people cutting costs by more than half compared to last year, according to research released by credit reference agency Callcredit.

More than one in four people (27%) plan to cut their Christmas budget by 50% or more, compared to last Christmas.

55% of the UK adult population are planning on reducing their Christmas spending this year
60% of 25-34 year olds are planning on spending less this Christmas, compared to just 47% of 18-24 year olds.

Women are more concerned about Christmas finances this year than men, with 61% reducing their spending compared to 48% of men.

In last week's Pre-Budget Report, Alistair Darling cut VAT to 15% in an attempt to drag Britain out of recession, boost Christmas spending and bring relief to millions of families across the UK. 55% of the UK adult population will still look to cut back on their spending over the festive period.

Consumers up and down the country are being more careful about what they spend this Christmas, but it's the 25-34 year olds who are planning on being the most conscientious. 60% of this age group are going to reduce their spending habits, with 30% of them cutting costs by more than half.

And it's the 18-24 year olds who are least worried about the current economic landscape with less than half (47%) cutting festive costs and 11% planning to spend more this Christmas than last.

Owen Roberts, Head of callcreditcheck.com, comments, "Despite the recession and recent financial turmoil, Christmas 2008 should still be as fun and enjoyable as possible. Spending less does not necessarily mean a bleak Christmas, but instead friends and family can enjoy homemade presents for example and fewer consumers will be left with a financial hangover in the New Year.

"Today's economic climate is a worry for everyone so awareness and a healthy understanding of your own situation are essential. Whatever the age, consumers should take their personal finances seriously. Getting a copy of your credit report is an excellent first step for obtaining a financial overview and we have been encouraged to see a 50% increase in subscriptions to our own online credit report service in the last few months."