Worryingly 1.2 million of those plan to turn to payday loans to cover the cost of Christmas.
The new research also highlights the financial pressures families face as they stretch their finances over the next two months, with over a third of UK adults (38%) saying they are ‘worrying’ about how they will afford Christmas this year.
Despite intentions to cut back, 34% of UK adults admit they expect to start 2014 in debt (about 17 million people) because of the cost of Christmas.
Jane Symonds, head of service delivery at the Money Advice Service, said: “Christmas is an exciting time to catch up with family and friends but can also be a worry financially, and very stressful if money is tight.
“Getting to grips with the costs in advance of the big day will help you take control of your spending and alleviate some of the pressure.”
To help those struggling with finances for the festive period Money Advice Service has launched a Christmas Money Planner.
Symonds said: “Our Christmas Money Planner will help you prioritise the essentials and see where you can perhaps make savings to make it extra special: www.moneyadviceservice.org.uk/christmasplanner.
“If you're working on a tight budget, our Cutback Calculator will show you how to free up some spare cash for Christmas.
“We also have lots of impartial advice to ease seasonal spending concerns - from how to set a saving goal to why it’s vital to review your borrowing options before taking on any extra debt.
“Our advice and money advisors are here to help everyone worry less about their festive finances and enjoy the season a little more knowing they are in control of their money matters.”
