"2020 has been a year none of us will forget and the impact the Covid-19 pandemic has had on every one of us is profound," says Ann Francis of Cambrian Credit Union who explains how people throughout Wales are likely to be spending less this Christmas.

"Financially many people have suffered due to job losses, cutbacks on overtime and long periods of furlough," she said.

"We’ve also had a stark reminder that building up a good savings pot is essential in case the unexpected happens.

"A Credit Unions of Wales survey suggests generally we’re going to be more frugal this Christmas and keep a closer eye on our spending habits because of the lessons learned this year.

"But it also shows many are preparing to borrow from a payday lender to ensure festive cheer– something they will rapidly run out of in 2021 if they start a new year in unaffordable and unmanageable debt.

"More than half (55 per cent) of respondents said the pandemic had a negative impact on their finances. Four in 10 planned to spend less compared to Christmas 2019 and more than a third (36 per cent) expected to keep spending on gifts, food and all the trimmings below £500, compared to 27 per cent last year.

"Fewer people have saved specifically for Christmas this year compared to 2019, which again indicates many of us have struggled to put money aside after paying for essentials.

"However, the survey also revealed more people will turn to their savings to pay for Christmas.

"Three in four people planned to take some form of credit, a loan, credit card or overdraft and high-cost credit like a payday or doorstep lenders.

"So, this Christmas if you need to borrow compare interest rates, compare repayment amounts and the length of the borrowing to make sure it’s affordable and the best deal for your circumstances."