Britain's love affair with spending will reach its peak at Christmas. NIGEL JARRETT looks at the pitfalls and how they might affect the over-50s

OUR finances not so long ago used to be in the black for most of the year until Christmas, when the seasonal spending spree turned them as red as aunty's annual glass of ruby port.

Now, we are encouraged to live our lives in debt and to spend vast amounts of money we simply do not possess in the fearful hope of being able to keep up the repayments.

For the over-50s and retired on reduced incomes, it can be a trying time. On the other hand, of course, retirement might mean less income in pension terms, but more in terms of being able to realise equity, in which case those Christmas presents might flow more extravagantly.

But, generally speaking, the older generation will see their position as a time for cutting back, and in the process, offering some lessons in

meaningful giving to younger relatives about to pile debt upon debt in the cause of seasonal goodwill.

The fact is, most of us buy the presents offered to us at exorbitant prices, and we have come to believe in the perverse rule that it's the expense, never the thought, that counts.

According to Newport counsellor Phil Millichip, advertising and social pressures represent the core of the problem and within it lies the solution.

"We are in an age of materialism in which goods mean everything," he said.

"People need to get back to the real, deeper values of honesty, openness and true friendship.

"They have to be honest and look closely at what they spend at Christmas and possibly say to people that this year they will be sending a card rather than giving a present.

"A card sent by the person who made it can be a real gift, but a gift can be anything at all.

"Families may not understand and if they cannot deal with it they are the poorer. It's a creative problem.

"It doesn't matter what the rest of the world is doing, it's what we are

doing as individuals that's important."

Sound advice. But it's as well to keep a close watch on spending and curb it where necessary. In other words, be brutal as well as joyful.

IF a radical change of attitude is a gesture too far, there remain ways of reducing the cost of Christmas without appearing to be a cheapskate:

l Set yourself a limit on how much you are going to spend;

l Small, simple things are often inexpensive and likely to be valued because they are easier to store or are consumable;

l Never be tempted by astronomically-priced kids' toys;

l Always think of presents that can be shared, especially by couples;

l Go for original gifts: a jar of fruit pickled in the South of France is better than a £30 fondue set that will be used once and stashed away.

l Cut down on pricey Christmas fare that will just make you feel bloated.