Seeking debt help or taking out a loan could help make Christmas more magical for kids after a finanical firm revealed that Brits will buy less presents this year.

According to research from the price comparison service, 56 per cent of people are buying fewer gifts for their loved ones, while 44 per cent won't be giving their children the latest gadgets they asked for on their Yuletide list because of their cost.

A series of annual surveys are in disagreement over whether people will spend more this Christmas than previous years, but the difference seems to be spending on gifts for friends and family.

Director of consumer policy at the group Ann Robinson, commented that the festive season could take its toll in 2010 too."Four in ten people are still going to experience some financial worry next year as a result of Christmas," she said.

The figures also showed that seven per cent of Brits will even find it hard to pay the household bills in the New Year. However, the survey added that 78% of people will search out bargains on the High Street.

Another study from an online bank, recently found that Christmas will cost parents an average £40 a day to their children entertained over the Christmas holidays.

People who are struggling with their finances but want to avoid disappointing their kids by having to buy credit crunch gifts, could consider taking out an unsecured loan or a debt management plan.