The average family is expected to spend over £800 celebrating Christmas this year.
It's predicted that some of the budget will go towards food and drink as well as Christmas cards and decorations.
But a large majority will be spent on presents for loved ones and friends.
The survey found that:
According to the Money Advice Service last year, we spent nearly £2.4 billion on discarded food and unwanted gifts.
For many people Christmas spending can easily get out of hand with 37% admitting they feel under pressure to put on a special day for their family.
As a result, more than a quarter say they spend more than they can afford.
The research also revealed around 1.4 million people are planning to use payday loans to help cope with the financial pressure.
A few suggestions from the Money Advice Service to ensure you don't over spend this year is to make a list of what you expect to spend and stick to it.
Other things you can try doing is to stock up on freezer food freezing, avoid store cards and consider making home-made presents instead.