Thoughts of Christmas celebrations may now be firmly behind us, but for some people, their debt hangovers from the festive season will still be lingering when the sun is shining and they’re dressed in shorts and T-shirts.
One in six (16%) people went into debt to pay for Christmas 2024, new research for online budgeting tool IE Hub indicates.
On average, they estimate it will take them four and-a-half months to pay it off – raising the prospect of still dealing with their Christmas debts in May – when some will be looking to find cash to pay for their spring or summer holidays.
For some, it will be closer to Christmas 2025 by the time they get back on track.
One in 20 (5%) of those thought to have gone in debt during Christmas 2024 believe it will take 11 to 12 months to pay it off and 13% estimate it will take at least six months.
More than a fifth (21%) of people went over budget during Christmas 2024, the survey indicates, which was lower than the 27% who said this when similar research was carried out for Christmas 2023.
On average, people who blew the budget during Christmas 2024 overspent by just over £250, according to the survey of 2,000 people across the UK carried out by Censuswide.
A third (33%) of those who have racked up debts plan to work extra hours to pay it off, while 29% will use credit cards.
A fifth (22%) will make extra cash to cover what they owe by selling belongings and one in seven (14%) will ask family and friends to help them out.
Dylan Jones, CEO of IE Hub, says: “Christmas should be a fun time, but it is worrying that Christmas debt can take many months to pay off, leaving people vulnerable to taking on new debt over the summer, and not much breathing space before preparing for the next festive season.”
As well as using tools to budget, people could also consider speaking to their lender about managing their debts and weigh up their options to see if there are more cost-effective ways of borrowing.
Speaking sooner rather than later to your bank could potentially mean having more options to manage debts.
Charities may also be able to provide support. Christians Against Poverty, (CAP), for example, has launched a Budget not Blues campaign, to help people improve their finances in 2025, offering free face-to-face money coaching sessions.
It also has a new Money Personality Quiz that people can take to help them understand their habits better and build a better relationship with money in 2025.
