Amid all the pressure to splash out on Christmas, a charity has issued a warning that doing so could leave some people with a nasty financial hangover in the new year
More than 14 million adults will struggle to afford Christmas this year, a debt charity has warned.
In a poll, StepChange found over in four adults who it questioned admitted they would battle with the cost of the festive season. The figure rises to almost one in three parents who have kids living at home.
While Christmas is a time of joy and giving for many, it also brings added worry for many others, especially with expectations to splash out extra on food and presents.
StepChange says that, as a result, is it sadly when people resort to taking on even more debt which they may not be able to afford. Its survey discovered that an estimated four million adults will worryingly be relying on credit to fund their festive spending.
Of those, six in 10 admitted their would be borrowing more than last year, while almost nine in 10 said it was due to the higher cost of living. More than two in five predicted it will would them more than six months to repay the credit they use this Christmas.
And 17% believe it take more than a year to clear the festive debt, with all the potential cost of interest being added on top over that time.
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StepChange says that because Christmas can be a pressurised time for people’s finances, it tends to see a spike in people in need of debt advice in January.
“Christmas is a time for joy and togetherness, but we understand it can also bring financial pressures, especially for those already struggling with debt or tight budgets,” said Vikki Brownridge, the charity’s chief executive. “The desire to make the festive season special through gifts and spending is natural, yet relying on credit now can often lead to stress and hardship in the new year.
“This year, just like the last few years, many households have felt the strain of persistent high living costs and energy bills, leaving less room in the budget for Christmas. If you’re considering using credit cards, buy-now-pay-later, or other borrowing options, take a moment to think about whether repayments will still be manageable in January and beyond. “Your loved ones value your presence far more than presents that put you under financial strain.
“If you’re worried about debt, whether now or after Christmas, don’t wait to seek support. Free, confidential advice is available from charities like StepChange, helping you plan for a financially healthier start to 2026.”
With that in mind, StepChange issued five top tips for dealing with debt or money worries at Christmas:
Check your budget Know what you can really afford before you start spending. A clear budget equals less stress. :: Shop smart Grab deals, but stick to your list – don’t let offers tempt you into buying extras you don’t need. Gift with care Set spending limits or try Secret Santa. Talking openly with friends and family can ease the pressure for everyone. Plan ahead Start saving for Christmas 2026 in January as even small amounts add up and make next year easier. Think before you borrow Credit cards and buy-now-pay-later can lead to a debt hangover. If repayments will be tough, skip the credit and protect your peace of mind.
