Shoppers are splurging on Christmas presents despite their best intentions, claims PayPal.

More than eight in ten respondents to a recent study by the company claimed to be "savvy shoppers", but more than half of those polled made no attempt to set a budget for their seasonal expenditure.

This figure was found to be highest in Scotland, where just 33 per cent of respondents professed that they stick to a budget, while self-directed fiscal discipline was found to be the most common in England's south with 45 per cent of consumers saying they reign in their spending.

Advice from PayPal on keeping Christmas spending in control includes making lists, drawing up shopping plans and undertaking thorough product research.

For those who cannot avoid getting into debt at Christmas, AWD Chase de Vere has recommended trying to clear debt as soon as possible following seasonal festivities.

And debt consolidation loans - which represented £8.8 billion of the secured loans market in 2002 according to the Office of Fair Trading - could be one way to deal with financial troubles in the new year.
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