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For many, Christmas is a time of celebration, but it can also be a time of increased financial strain. Our data reflects this reality – in January 2024, we saw a 60% increase in visitors seeking debt advice through our website, and it proved to be the busiest month for referrals.

As Christmas approaches, around 35% of families with one child report struggling to afford the season, and nearly one in ten people rely on credit cards, buy-now-pay-later schemes and other forms of credit to cover expenses according to the new YouGov polling by StepChange. While these options may seem convenient at the time, they can quickly snowball into unmanageable debt when interest and charges start to build up.

With this in mind, we’ve put together some top tips to manage Christmas spending responsibly:

  • Avoid retail therapy – to some people, shopping might feel like a quick way to lift their spirits, but it can lead to unnecessary spending, leaving you with less money for the things that really matter. Focus on spending within your means, keeping in check with your budget and priorities.
  • Make a shopping list – It’s a good idea to make a list of everything you need before heading to the shops. This will help you resist impulse buys, especially when faced with tempting sales and promotions.
  • Stick to your budget – Rather than relying on credit or dipping into overdrafts, only use any spare income you have available. If your account has an overdraft that you don’t use, don’t suddenly be tempted to dip into it purely for the Christmas season, as this can quickly turn into another form of credit which will eventually need to be repaid.
  • Hunt for discounts and freebies – Take advantage of loyalty schemes and discount codes. Many supermarkets offer points systems which can be redeemed for gifts or food.
  • Know the difference between store and loyalty cards – Store cards function like credit cards and require repayments, whereas loyalty cards reward your spending without the risk of interest.
  • Explore free local activities – Community centres often host free or low-cost events over Christmas so it’s worth checking out what’s happening at your local centre.
  • Seek help if needed – If you’re finding it tough to manage Christmas costs, know that many organisations are ready to lend a helping hand. The Trussell Trust is one example of a charity who can provide emergency food parcels and additional support.

We’re here to help

If Christmas spending has left you feeling stretched, we’re here for you.

You can call us on 0800 813 1833, chat with us on Live Chat, or fill out our form to connect with us on WhatsApp.

For more practical tips, BudgetSmart offers hundreds of ways to improve your spending habits throughout the year.