One third of US consumers expect to spend less this Christmas as they struggle with debt and rising prices, new research shows.

According to a survey by the Nielsen Company, 35 per cent of those polled will be reining in their spending this holiday shopping season. Just six per cent of consumers expect to spend more.

It is not just those on low incomes that are cutting back. The research shows that 32 per cent of affluent consumers will be tightening the purse strings this year.

"Clearly, consumers across all income levels have some trepidation about holiday spending," said Todd Hale, senior vice-president at Consumer & Shopper Insights.

Department stores and retailers selling electrical goods could see the biggest drop in Christmas sales, with 28 per cent of those polled planning to spend less in such stores.

Consumers struggling to purchase gifts for friends and family members this Christmas may consider pay day loans, which will provide them with the funds they need until they receive their next pay check and are able to pay back the loan.

Meanwhile, research released last month by Mediamark Research & Intelligence reveals that 62 per cent of US consumers begin their holiday shopping before Thanksgiving.

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