New research from Post Office Christmas Club has revealed that for 29% of people, the cost of Christmas shopping, entertaining and socialising results in increased stress over finances.

Of the 10% who had to increase their debts to cover Christmas, over a third are going to have to make cutbacks on essentials such as food and utility bills in order to repay debts. Almost half (49%) stated they’ll be cutting back on going out throughout the year.

Although the same number of men and women are stressed over Christmas expenditure, 15% said they have no idea how they are going to make repayments, compared to just 4% of women.

Michael Birchall of Post Office Christmas Club, said: “Although Christmas 2009 may already feel like a distant memory to many, for millions of people debt and financial worries will be a constant reminder in the months and even years to come."

Customers joining the Post Office Christmas Club receive a special payment card, onto which they can make pre-payments from just £2, over the counter at any Post Office branch. From November 1st, the card is unlocked, enabling customers to use it to buy goods and services directly at retailers, or to purchase retail gift cards.