Brits are feeling positive about their finances for the coming year with the majority expecting to have paid off their Christmas debts by the end of march, if not sooner, a new survey says.

Four out of five people say they expect their family's finances to be the same or better than in 2005, according to Nationwide Building Society.

Over half of those surveyed expect to have finished paying off the debts their Christmas overspend by the end of January. But a quarter said their Christmas debts would stay with them into April and beyond.

Over half of people said they paid for their festive spending from their savings whilst a further 13 per cent relied on credit and store cards.

Stuart Bernau, Nationwide executive director, said: "It is encouraging to see that so many people are able to pay for Christmas from their savings, rather than going into debt.

"For those who have chosen to borrow money to fund Christmas, now is a good time to review how they will pay off that debt, and to check if they could get a better deal by switching their credit card, or by taking out a personal loan."

Nationwide recommends that people with a financial hangover from Christmas should shop around for the cheapest credit card deal and check that payments are applied to the most expensive debt first. Personal loans can also help to manage debt.