Top tips to help make this Christmas a financial cracker

With just over six weeks to go until Christmas, research from MoneySupermarket.com found that only a third of Brits have enough cash to fund the festivities, with a further one in five (20 per cent) turning to savings and one in ten (10 per cent) turning to plastic.

A recent poll of almost 6,000 users by the comparison site found that only 38 per cent of Brits will be able to fund Christmas using their disposable income. For the rest; a fifth (21 per cent) will use their savings, while a further 11 per cent say they will put their festive spending on their credit or store card. Four per cent say they'll have to use their overdraft to meet costs over the festive period.

On a more positive note, eight per cent of respondents have planned for Christmas in advance and have been paying money into a regular saving scheme.

Whatever your financial choice this Christmas, MoneySupermarket offers top tips for those thinking about their options this festive season:

1) Savvy saving

It's not too late to start saving for Christmas this year- just setting aside twenty pounds each week over the next few weeks could pay for the Turkey and all the trimmings. This will spread the cost of the festive period, helping to reduce the burden for those having to solely rely on their December salary to foot the bill. By checking the rate on savings accounts, people can make sure they are getting the most bang for their buck - the current market leading easy access account is Santander's eSaver account at 3.10 per cent. Savers that start saving for Christmas should then make sure they maintain their savings mantra for the New Year, to build upon next year's savings pot once the festivities have ended.

2) Cash in with a cashback credit card, or shop around for a zero per cent on purchases card

Using a cashback credit card can act as an extra gift from Father Christmas - as you earn money on spending on your card. The cashback gained from spending throughout the year could be put towards next Christmas' funds, or even help pay the bills. For the disciplined spender, this is a great way to earn a return from their spending, but as with all credit products, consumers need make sure they pay off the full amount every month and never borrow more than they can afford. The Amex Platinum Cashback Credit Card offers up to 2.5 per cent cash back for the first three months up to a maximum of £100 followed by an ongoing cashback rate of 1.25 per cent. In addition, this card also offers a bonus cashback rate of 2.5 per cent for the month of the 12 month anniversary of the card being opened so you can maximise spending going into next Christmas.

Those planning to spread the cost of Christmas should shop around for a credit card offering zero per cent interest on purchases. Spenders should ensure they pay off the balance as soon as possible and borrow within their means, or they may find themselves paying off this year's Christmas presents next year. A card such as the Tesco Clubcard Credit Card offers zero per cent interest for 15 months on purchases.

3) Don't fall into the store card trap

Beware of the allure of store cards; although initial discounts at the counter can be beneficial, if you do not pay off the full balance at the end of the month, higher interest rates on store cards compared to most credit card can cancel out the initial offer. Using a reward card is a much better alternative as they offer a more competitive interest rate and still reward for spending.

Kevin Mountford, head of banking at MoneySupermarket commented: "Christmas is fast approaching, and a number of people may not be looking forward to funding the festive period. Many have been hit by the rising cost of living and the thought of paying for Christmas will no doubt push people to break the ice on their savings pot. Yule tide can be an expensive time of year and those planning to use their disposable income or their savings to fund their Christmas spending may find they get swept up in the festivities and spend more than planned. The golden rule of festive spending is to know how much you have available and then stick to your budget, or you could be left in the cold paying off Christmas well into the New Year."