The latest Credit Union Consumer Sentiment Index has found only 5% of people have more spending power this Christmas, with 61% reporting they have less money this year compared to last year.
The survey found the cost-of-living crisis, coupled with recent job losses in the tech sector, has made most of us nervous about personal finances.
Half say they'll pay for Christmas from their current wages and income, while 1 in 3 will dip into savings. The remaining 1 in 5 say they will either borrow money or don’t know how they'll pay for Christmas.
While most of us will cut back spending on food, drink and entertainment, the amount spent on children will stay the same as last year.
Economist Austin Huges, estimates 'that higher inflation rates have translated into a hit of about €3,000 to the average household's buying power this year". Mr Hughes, added given the higher costs, such as energy and food bills, associated with this time of the year, "the sense of ‘feel-poor’ is likely to be pronounced this Christmas".