A cut-back Christmas but still one in five to put it on credit

As another festive season approaches, UK shoppers are tightening their belts according to research by Abbey Credit Cards. Father Christmas' sack will be lighter this year, with more than half (52 per cent) of Brits planning to spend less on Christmas presents. Astonishingly one in three (34 per cent) say they won't be buying any gifts at all for family and friends.

More than half (53 per cent) of us will be choosing cheaper brands and supermarket own-label items for the Christmas food shop, while over a third have switched to discount supermarkets. In addition, over half of Brits (51 per cent) say they are willing to sacrifice a luxury treat for themselves over the festive period, with one fifth cutting back on holidays (21 per cent), and over a third reducing their spend on entertainment (34 per cent).

Women have become particularly prudent with the purchases they make in the run up to Christmas - with 80 per cent planning to shop around for the best deal, and a quarter (24 per cent) looking out for any last minute bargains (compared with 72 per cent and 22 per cent of men respectively).

And even despite the Christmas cut-backs, one in five Brits (21 per cent) still plan to fund the entirety of their Christmas shopping with their credit card and 20 per cent will be dipping into their savings.

Callum Gibson, of Abbey Credit Cards, comments: "With recession looming this Christmas it's no surprise that many people are tightening their purse strings. However, sometimes it's not about cutting back, but just making sure you shop savvy. The new Abbey credit card currently offers 3 per cent cash back on all supermarket and petrol spending - great for saving money on the Christmas food shop and those trips to see grandparents. Also it has 0 per cent interest on balance transfers for nine months, which can help spread the burden a bit."

For customers who are interested in applying for an Abbey credit card, go online at Abbey.com

Features of the Abbey credit card are:

0% balance transfer for 9 months from account opening, with a 3% fee (minimum £5)
3% cashback on supermarket spending and petrol for 6 months from account opening up to a maximum of £75 (maximum £12.50 cashback earned per month)
0% on purchases for 3 months from account opening
No annual fee