According to James Falla, director of Thomas Charles, Britons should take the time to draw up a list documenting their income and expenditure over the Christmas period. In doing so, he suggested that consumers could find that their finances are in a much more favourable position both in the final stages of 2007 and in the new year. As a result, this may help them to meet various demands on their spending such as secured loans, utility bills and credit card statements and avoid developing unmanageable money problems.

He said: "In terms of trying to avoid getting into debt, the first thing to do is to understand your budget. The easiest way to do that is to do a bit a personal budgeting, look at your monthly money coming in and your expenses going out and then work out what you have available after that for your Christmas spending."

Setting up a budget, the director stated, should be able to help consumers "understand what you can afford to spend". In addition, Mr Falla asserted that the creation of such a financial plan can aid Britons in planning to save at the start of each month. By doing so, he claimed that people will be able to immediately identify how much money they will be able to put into a savings account. Overall, he claimed that "not enough people" are saving, which could consequently see them come under financial strain in the future should they face unexpected spending pressure, such as a higher than expected utility bill or demand for payment on a secured loan.

In addition, the Thomas Charles director advised consumers of all backgrounds and professions to ensure that they live within their financial means. He pointed out that when people fail to do this, it is often the point at which they become unable to manage repayments on secured loans, plastic cards and other types of borrowing and in turn develop monetary difficulties. Mr Falla added that for those people currently attending university avoiding taking out a credit card is "absolutely the right thing to do" in terms of steering clear of money management problems.

However, for those consumers who discover that they are already finding it hard to keep on top of their finances in the run-up to Christmas, applying for a low-rate loan may be the best way for people to get on a secure fiscal footing. Taking out this type of loan could be particularly advisable for Britons as the festive period approaches with recent findings from Lloyds TSB showing the majority of consumers will face a "financial hangover". According to the financial services firm more than half (59 per cent) of consumers think that they will go over their planned spending this Christmas by an average of 174 pounds. However, those between the ages of 45 and 54 could be on track for more financial difficulties as they believe they will overspend by some 214 pounds.