The Britons who fail to budget for their Christmas spending are often those using credit to pay, a new report has warned.

A study by Halifax has revealed the average UK adult is to spend nearly £400 on presents alone this December and only a third plan to set themselves a budget.

Such a lack of planning often suggested the person was overspending and becoming indebted, the report warned.

A recent survey of debt by Chiltern revealed the average debtor owes more than £26,000 to eight creditors.

Joanne Gill, spokeswoman for the debt management company, said: "Debt is a source of constant stress for many families as they juggle their credit commitments to maintain their minimum payments and spiral further into debt."

She warned that many borrowers feel under pressure to spend money on Christmas even if they cannot afford to.

One option open to those struggling with debt is to seek advice from a debt management firm. Such companies can liaise with creditors on the debtor’s behalf and arrange affordable monthly repayments.