Christmas crackers! Stores stock up on festive goods early to beat crunch.

Byline: Lisa Jones

CHRISTMAS has come early for one South Wales store, which has decked out its shelves with a Yuletide display.

It may still be August and officially summer, but Debenhams' store in the St David's Centre, Cardiff, has put out racks of Christmas wrapping paper, cards and tree decorations - the first in the city to do so this year.

But the early arrival of the tinsel and crackers could be a welcome arrival for families struggling with rising household bills. People may not quite be ready to get into the Christmas spirit but experts are advising people to start budgeting for Christmas now to spread the cost.

A report by Cardiff-based Wales Centre for Credit Counselling has said the amount of available cash left in the monthly family budget had dropped from pounds 130 five years ago to just pounds 21, sparking fears of a gloomy Christmas with a squeeze on credit.

Founder Malcolm Hurlston said rising costs were pushing people over the edge into bankruptcy in Wales.

The Consumer Credit Counselling Service (CCS) said it expects to help around 6,000 people from Wales with their debt problems in 2008, compared with just under 1,400 people in 2003.

Frances Walker of CCS said: "Credit will be less available so it's best if people don't rely on it too much.

"People need to be realistic about what they can afford to spend at Christmas. It's early enough at this stage to agree with family and friends a limit on what you're going to spend on each other or decide to limit the presents to the children."

John Elwes from the National Debt

Line said debt advice services were busiest after Christmas.

"People should draw up a personal budget early on to know exactly the sort of money they've got."

Colin John, corporate finance director at Deloitte accountants, in Cardiff, said: "Consumers are working on a tighter budget and retailers are giving themthe opportunity to spread the expensive cost of Christmas shopping by starting early.

"This time last year, there was more credit available to consumers who had the option to buy now and pay later.

"But with the decline in the accessibility of credit cards and loans, consumers have no other option but to save up for Christmas and spread the cost as much as they can."

Richard Dodd of the British Retail Consortium said department stores routinely set out Christmas goods in August to catch shoppers who wouldn't be around in December.

He added: "Store space is a valuable commodity for retailers. They would only ever devote space to something people wanted to buy. It may be that more people will want to spread the cost this year than has previously been the case and start buying Christmas presents earlier. They may want to plan ahead, because of uncertainty.

A lot more customers are in even more difficult financial circumstances than they were last year.

"Sometimes people will spend on Christmas, regardless, because they want an antidote to the general gloom."

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CAPTION(S):

YULE NEVER BELIEVE IT! Cardiff shopper Victoria Gladwin stocks up on seasonal goods as stores make an early bid for the Christmas market. PICTURE: Peter Bolter Y