UK consumers 'dipping into savings' to fund Christmas

A number of consumers will look to meet the costs of Christmas this year by using a proportion of their 2009 savings, according to new research.

Savings amounting to £3.45 billion may be used for this purpose, Abbey Savings believes.

Figures from the firm find that 32 per cent of consumers may spend nine per cent of the cash they have saved in 2009 to pay for festivities.

"Savings shouldn't just be for Christmas and we encourage people to keep a healthy balance, so that they're starting the new year from a good base," Reza Attar-Zadeh of Abbey Savings has noted.

Mr Attar-Zadeh, the firm's director of savings and investments, added that people may also be considering a reduction in their Christmas outgoings.

Abbey Savings recently suggested that a number of consumers are saving cash by cutting back on the amount they spend when going out, news which may appeal to people looking to manage credit card debt.