Over 50% of people expect to get into debt this Christmas, according to a new survey.
Meanwhile more than 60% say it will take them up to three months to recover from overspending during the festive season.
More than 56% of those questioned in a survey by iReach for the Irish League of Credit Unions said they will spend over €500 on Christmas this year, while just under a third will spend in the region of €750.
Men tend to spend more on Christmas than women, but are less likely to experience a shortfall because they are managing their finances better, according to the survey.
“2010 has been a watershed year for the Irish population in terms of coping with job losses, pay cuts, and increased taxes and we still have some of the toughest financial challenges ahead," said Irish League of Credit Unions CEO Kieron Brennan.
"Almost 50% of people surveyed said they are drawing on their own personal savings to fund this Christmas," Mr Brennan added, "and with this in mind we want to advise people to not only avoid using moneylenders, due to the extremely high rate of interest charged, but also to watch out for credit card debt, as a high rate of interest will be charged to balances that are not cleared on time every month."