Cost-of-living pressures forcing families to take out loans this Christmas, while others are cutting back on spend

The Credit Union Consumer Sentiment Index shows almost 10pc will borrow money this year to fund festivities

The stark findings in the November Credit Union Consumer Sentiment Index indicate the pressure on household budgets from the cost-of-living crisis in which food, energy and a range of other goods and services continue to rise in price.

Stretched families are having to budget, dip into their savings to fund the festive celebrations and some are even borrowing.

The survey found that 52pc of Irish consumers said they have less money to spend on Christmas than they had a year ago. Only 9pc said they have more spending power this year.

Surveyors found that 53pc of consumers plan to cut back on Christmas entertainment, with 50pc saying they will spend less on presents this year.

Some 42pc of consumers will fund their Christmas spending with their income, down on 47pc a year ago.

The numbers relying on savings are up, but so, too, are numbers borrowing or relying on help from family and friends.

This hints at more strained household finances for a non-negligible group of Irish consumers

Economist Austin Hughes, who oversees the compiling of the survey, said: “A clear sense that cost-of-living pressures remain broadly based is ­suggested by the fact that the number of consumers with less money to spend on ­Christmas 2025 is ­nearly six times as many as the number with more money to spend.”

He calculated that the Christmas cost inflation was running at 2.4pc this year, compared with 1.7pc last year.

Mr Hughes said cost pressures would mean Christmas 2025 would be more difficult for many Irish consumers.

Household income remains the most common source of funding for the festivities, but there is a pick-up in those using savings, rising to 37pc from 34pc last year.

Surveyors also found an increase in those borrowing to finance their Christmases – up from 7pc last year to 9pc.

Meanwhile, 5pc of those surveyed plan to draw on the financial support of family and friends, up from 3pc last year.

Mr Hughes said: “This hints at more strained household finances for a non-negligible group of Irish consumers. This group might also include many of the 9pc of consumers who said they don’t know how they will finance their Christmas spending.

“Those citing difficulty making ends meet are more than five times as likely to borrow as those making ends meet with ease.”