More than one in four people will struggle to afford Christmas this year, with around 4 million relying on credit

^{11 December 2024}

New YouGov polling by StepChange Debt Charity has revealed that more than one in four people (28%), equivalent to around 14.5 million, will struggle to afford Christmas this year – which is a rise of 1.6 million people since last Christmas (25%).

The new survey also shows that:

• Among people with children at home, over one in three (35%) will struggle to afford Christmas
• One in twelve people (8%), around 4 million, will be relying on credit to fund their festive spending
• A further 3% of people, around 1.5 million, won’t celebrate Christmas at all due to cost

Of the one in twelve (8%) intending to use credit to cover Christmas expenses, almost four in ten (38%) will be using Buy Now, Pay Later, a two-percentage point rise compared to last Christmas (36% in 2023).

Worryingly, almost half (47%) of those borrowing money this Christmas say it’ll take them more than 6 months to repay the credit they use.

StepChange Debt Charity says it always sees a rise in people looking for help with problem debt in January and is encouraging those struggling to reach out for support as soon as possible.

Richard Lane, Chief Client Officer at StepChange Debt Charity, said:

"We know that the Christmas period can be particularly challenging for those facing financial difficulty or debt problems. People may feel pressured to make Christmas with their loved ones special through gifting and spending money. However, we know all too well that the repercussions of relying on credit over the festive season can rear its head in the new year.

"The impact of rising energy bills and continually high housing costs will also have taken a toll on household finances this year, causing disposable income to be stretched over the festive season.

"For those thinking of using credit cards, Buy Now, Pay Later or other forms of borrowing this Christmas, we would urge you to pause and really consider whether repayments will be affordable a month or two down the line. It’s unlikely that your friends and family would want you to struggle financially as a result of your generosity. If you are worried about debt, now or in January and beyond, it’s never too soon to reach out for help. Free debt advice and support is available from charities like StepChange."

StepChange has shared its top three tips for people worried about their finances this festive season, and what to keep in mind when Christmas shopping:

1. Go through your budget to look at what you can realistically afford to spend over the festive period. This is a really helpful way to identify how much money you have spare to go toward Christmas planning.
2. Keep your eye out for deals or offers on items you know you want to buy this Christmas, but don’t get drawn into buying things you didn’t need in the first place – a deal is only a deal if you were going to buy it anyway. Making a list in advance of your Christmas shopping may help you to stick to it and prevent you from buying extras you may not need.
3. Think carefully before you borrow money - try not to get drawn into short-term high cost credit, or options to buy now and pay later if it’s not affordable. If it’s going to take many months to repay what you borrow to pay for Christmas, it’s worth pausing for a moment to think about whether your friends and family would really want you to suffer financially as a result of your generosity.

Notes to Editors

1. All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 2030 adults. Fieldwork was undertaken between 13th - 14th November 2024.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
2. Polling referenced from 2023 is from YouGov Plc. Total sample size was 2061 adults. Fieldwork was undertaken between 8th - 9th November 2023.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
3. Population estimates for GB adults are conducted by StepChange, based on ONS data.