Almost one in 10 people went into debt to pay for Christmas and six per cent are still repaying debts from a year ago, says a report.

Eight per cent admitted they borrowed money from an official lender or family and friends, according to advice body R3.

Another 13 per cent said they would have enough money left after paying for Christmas to cover their monthly bills.

But one- third of people confessed to feeling guilty if they did not live up to the expectations of family and friends.

R3 president Peter Sargent said: "Christmas can be a treacherous time for people who are struggling already to make ends meet.

"While many people have been careful in their spending throughout the year, worrying numbers are set to break these good habits resulting in a financial nightmare for the New Year."

The group have predicted a record 154,355 people will be declared insolvent during 2010, and expect many of them to admit defeat in the next few months.

Sargent said: "Personal insolvencies hit record levels in 2009 and we usually see a rise in the New Year due to festive over-spending."