Christmas replaced by ‘Thriftmas’ as families cut the festive finances

Families feeling the pinch are trimming the festive finances and replacing Christmas with ‘Thriftmas’ as they try to avoid the New Year over-budget blues.

A survey has revealed 60% of people will be cutting back on the amount they spent last year, with a massive 85% saying they will avoid the temptation of putting it all on a credit card.

The trend towards ‘Thriftmas 2011’ is revealed in a survey of 3,000 consumers by the West Brom, the UK’s sixth largest building society.

While some people admit they are still paying for last year’s excesses, the majority are hoping to keep spending under tighter control – by agreeing to limit costs on presents, being frugal with gifts for friends and family members, and even making their own gifts.

Almost 70% will spend less than £100 on going out and socialising in the run up to Christmas, 82% will spend less than £250 on food and drink this year and 80% will be spending less than £500 on presents this year.

“There’s a definite mood among families that with so little spare money around this year they have to make what they have got go further,” said West Brom Divisional Director Stephen Leonard.

Among the ways people plan to save, 35% said they will buy supermarket ‘basics’ ranges, 17% said they will make their own presents, and 36% will make do with last year’s outfit for the staff Christmas party.

Some 37% have agreed a maximum spend deal with their family, while 23% have struck a ‘no presents’ deal with close friends.

Only 11% said they are prepared to go overdrawn in their current account to pay for Christmas with another 10% intending to use some of their savings.

The average planned Christmas spend on presents by those polled is just over £400. Just under one in ten said they still have debts from last year, which amount to an average of £232.

Interestingly 73% said they are not prepared to get into debt over Christmas, with 75% saying they will not blow everything just to make the children happy.

Stephen Leonard added: “It’s never too early to start saving for a big event such as Christmas and putting a little aside every month will soon help you amass a sizable savings pot. Borrowing at a time when money is already tight and the cost of living is rising really isn’t the answer.”

Useful tips from the West Brom for saving money this Christmas:

Set a budget and stick to it, especially for gifts – those ‘little’ extras all add up 

Be crafty and creative - make gifts, cards and decorations for a more personal Christmas 

Be sensible on your food shopping, don’t overstock and risk some going to waste 

Shop around for the bPatrick,Patrick,est deals – use the internet, coupons and vouchers plus pound shops for stocking fillers 

Don’t leave shopping to the last minute and end up paying over the odds 

Don’t buy new Christmas outfits – re-visit items from your wardrobe. 

Dig out those traditional family-favourite games rather than buy new ones 

Don’t go mad when the sales start on Boxing Day and buy bargains you don’t need. Be canny and grab genuine discount buys, such as Christmas crackers for next year 

Enjoy the festive break with days out in the open air – the countryside and beaches are free 

Start saving for next Christmas – get into the habit of putting something away each month into a tax free ISA or a regular savings account so that this time next year Christmas won’t be such a financial headache.