High pressures on UK consumers' spending are likely to impact to a significant degree on this year's festive outgoings, it has been suggested.

Online payment services firm PayPal has stated that it estimates the Christmas splurge this year will reach only half that seen in 2005 - possibly due to the extra pressure of utility bills, credit card debts and other borrowing repayments.

Those who are concerned about their level of debt might put their mind at ease before the holiday by investigating debt consolidation loans.

Meanwhile, those taking personal loans to cope with the extra costs of the season are likely to spend a good proportion on consumables, according to the firm.

Its figures suggest that 71 per cent expect to spend heavily on food, while 65 per cent will splash the cash on wine and spirits.

Christina Hoole, shopping expert at PayPal, reminds budget-aware consumers: "There are plenty of bargains to be had by shopping online compared to the high street.

"If you're prepared to do some digging around on the internet you'll find fantastic and original ideas to ensure you deliver the most creative presents without breaking the bank this Christmas."

And credit reference firm CallCredit agrees, stating that those wishing to make the most of their personal loan or other funds should make sure to shop around for the best deals available.ADNFCR-1287-ID-18391447-ADNFCR

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