IT'S GOING to be a cut-back Christmas this year as the economic downturn forces families to tighten their belts. More than half of shoppers will be spending less on food and pressies, according to the latest Consumer Opinion Panel from uSwitch. A third have also decided to slash their booze bill. In addition, 15% will be cutting back on the number of people they invite to Christmas dinner.

Ann Robinson, director of consumer policy at uSwitch, says: "The frugality that people started to adopt earlier this year now looks set to pick up pace and continue through Christmas and into the new year. Households are preserving cash as very often this is their only protection against market volatility, recession and redundancy. Whether the Government's VAT cuts will restore consumer confidence enough to see shoppers picking up their shopping baskets in earnest again remains to be seen."

So the Sunday Herald has put together 10 top tips to help you cut the cost of Christmas, without losing the sparkle.

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1. Play your cards right
One in five people plan to put their Christmas shopping on their credit card, so it pays to choose the right card.

There are a number of 0% deals on the market, which basically allow you to borrow money for free. And there was a 15.6% increase in the number of applications for interest-free credit cards through the website MoneyExpert in November as cash-strapped consumers try to cut costs. The Halifax All in One card offers 0% on purchases for 10 months. So too does the M&S Money card. But make sure you pay off the debt before you start to rack up interest at the standard rate of 15.9%.

If you can afford to pay off your bill in full at the end of each month, a cashback credit card is a great way to shop because you earn while you spend.

The American Express Platinum Cashback card has one of the most generous rates: you get 5% cashback for the first three months. The standard rates are tiered and you can earn up to 1.5% if you spend more than £10,000 a year. Abbey's "essentials" card offers a 3% refund on supermarket and petrol purchases at selected outlets for the first six months, up to a maximum of £12.50 a month. Or there's the Egg Money card, which pays a standard cashback rate of 1% a year.

2. Hunt for bargains
The big retailers are battling for your business this Christmas, with offers and promotions galore. WH Smith, for example, is giving customers up to 75% off books in its Big Book Sale. Or you can get three-for-two on selected gifts at Marks & Spencer.

The supermarkets are waging war over the cost of Christmas dinner. Many stores have cut the cost of festive fare, with Tesco promising to provide a turkey meal for less than £2-a-head. Don't be a supermarket snob. Own-brand goods are typically 20% cheaper than a brand name, without much - if any - difference in the quality.

Sale days are often announced at short notice, so you should keep an eye on the website of your favourite store. Or sign up for email alerts.

3. Find fabulous freebies
A number of mobile phone firms, such as Carphone Warehouse and The Link, are offering attractive free gifts with their phone deals, including laptops, ipods and satnavs.

But before you sign up for a phone contract make sure it's right for you. Otherwise, your freebie could turn out to be very expensive.

James Parker, manager of mobiles and broadband at moneysupermarket, says: "The offer of a PlayStation 3 or Nintendo Wii with your mobile contract seems like a great deal, but stop and think about your actual usage before getting carried away by the thought of a free console. Some of the tariffs offering consoles will tie you in to an 18-month contract at upwards of £30 a month, but if you don't use the inclusive minutes and texts then you're better off opting for a cheaper, more suitable contract and buying the console yourself."

4. Get shop savvy
You can make your money stretch further this Christmas by comparing prices. You don't even have to trudge up and down the high street because there are plenty of websites that can help you find the best deals. You can compare supermarket prices at www.mysupermarket.com. But the site does not include the deep discounters such as Aldi and Lidl. And they are worth a look. You can buy a whole Canadian lobster at Aldi for just £5.99.

Alternatively, you can employ a shopping robot or "shopbot" to search out the best deals. Kelkoo (www.kelkoo.co.uk), Pricerunner (www.pricerunner.co.uk) and Shopping.com (www.shopping.com) are probably the most well known. But it's often worth searching more than one shopbot because they all have links with different retailers.

5. Shop online
You can typically save up to 8.5% if you shop online, according to Which?, the consumers' association. Most of the big stores have their own websites and many deals are exclusive to internet customers. Just make sure you are dealing with a reputable name and that the payment system is secure.

6. E-cards
Christmas cards and stamps can add to your festive bill, so why not agree to send e-cards this year? You can send free e-cards from sites such as www.ecards.co.uk or www.hallmark.com. Many charities also offer the facility to send an e-card. It is often free, but you can of course make a donation.

7. Bulk buy
We all like a drink over Christmas and it can make financial sense to buy in bulk. Most stores offer a discount if you buy six or even 12 bottles of wine. Tesco is also giving a 50% discount on more than 50 wines, as long as you buy at least six bottles. But remember to drink sensibly.

8. Go coupon crazy
It used to be grannies that cut out money-off coupons, but we are all at it now! A number of websites including www.myvouchercodes.co.uk and www.moneysavingexpert.com allow you to print off discount voucher codes for high-street stores. You can also access codes that will authorise a discount if you are shopping online.

9. Cashback sites
Websites such as www.cashbackkings.com, www.topcashback.co.uk, www.greasypalm.co.uk and www.quidco.com offer cashback when you shop online with selected retailers. You normally have to set up an account and some sites only release the money when you have earned a minimum amount, but you can earn hundreds of pounds.

10. Stick to the list
If you are browsing the stores for presents, it's easy to buy more than you need, so write a list - and stick to it. David Elms, chief executive of Unbiased, a website of independent financial advisers, says: "Know what you want to buy for friends and family and then shop around for the best price. It's also a good idea to set a budget and then you don't spend more than you can afford."