The Money Doctor, John Lowry, on what to do:

1. Work out the cost of presents, decorations, food and drink and entertainment (days out, etc).

2. Total all these costs — you are going to have to pay for them through your own savings, an overdraft, loan or a credit card.

3. The best course is to start saving the previous January, but if you haven’t saved, you will need to borrow for the coming Christmas — but you then should plan to save DOUBLE from next January so as to pay for both this Christmas and the next.

4. Interest rates from your local credit union or your own bank tend to be among the cheapest options when it comes to short-term finance (eg, €2,000 loan over three years at 7.5pc will cost €62.21 per month. But better to pay over 12 months — this would cost €173.51 per month).

5. Overdraft interest rates range from 14pc, plus you pay an additional 12pc surcharge if you exceed your overdraft limit without permission.

6. Credit card rates vary from 9.11pc to 24pc+ (the latter for certain store cards) and virtually all credit card companies charge well over 20pc when you withdraw cash on a credit card from the date of withdrawal.

7. However, there are a number of companies who offer 0pc interest rate on transferring balances from another credit card company for up to 10 months. You might even be able to save during this period.

8. If you have a large family, maybe consider Kris Kindle which can be fun as you may not know who gave you your present and it’s also cheaper.

9. Look for discounts and offers while shopping, use vouchers and coupons, buy in bulk and consider own-brand generic products.

10. Alternatively, presents do not always have to be of the pecuniary kind — you could give an hour of your time.

11. Putting your head in the sand when the bills come through the door in January is not going to solve your problems. Communication is key and if you simply cannot afford the required repayments, negotiate and pay what you can afford. Theoretically you shouldn’t spend what you don’t have, but we are all human. Obtain professional help if you have to but do not ignore.

For more advice visit www.moneydoctor.ie