One in five expect to be paying for Christmas beyond April

Research from Thinkmoney shows that while the festive season may feel like a distant memory, the financial consequences are only just beginning for a significant number of people. Credit card statements, Buy Now Pay Later reminders, overdraft balances and household bills are all landing at once, creating pressure at the start of the year.

The survey of 1,900 UK adults who celebrate Christmas revealed that half (51 per cent) planned to fund festive spending using their regular income, while 42 per cent dipped into savings. But many relied on borrowing to make Christmas happen. One in four (25 per cent) used a credit card, 14 per cent used Buy Now Pay Later services, and 7 per cent borrowed from family or friends to cover costs such as gifts, food, decorations and travel.

Younger adults were more likely to lean on modern credit. Almost one in five 16 to 24-year-olds were planning to use Buy Now Pay Later, compared with just 6 per cent of those aged 55+. Only 40 per cent of 16 to 24-year-olds funded Christmas purely from their regular income, highlighting how stretched younger budgets have become.

For many, the cost of last Christmas will take months to clear. Only 28 per cent of respondents said they did not expect to go into debt at all. Just 22 per cent were planning to clear their festive spending by the end of December.

A further 21 per cent say they will still be paying off Christmas this month, while one in five expect repayments to run beyond April 2026. A small but concerning group say they do not expect to fully pay off the debt, meaning Christmas spending may sit on credit balances indefinitely.

The research conducted before Christmas also found strong public support for an early payday in December, designed to help households manage festive costs. More than eight in ten UK adults (83 per cent) said an early payday was a good idea, rising to 93 per cent among 18 to 24 year olds. But with many now facing January repayments, it raises the question of whether that optimism would remain if the same question were asked today, with the financial consequences of Christmas now in full view.

This makes Blue Monday not just an emotional turning point for households, but a financial one too.

Vix Leyton, Consumer Finance Specialist at Thinkmoney, said “Christmas spending typically comes from a good place. People want to treat loved ones, keep traditions going, and enjoy a special time of year, particularly after an incredibly tough twelve months, politically and economically. The challenge comes when January arrives and the bills begin to land, as we are in what feels like the longest month of the year, especially if your pay day got pulled forward.

“Our research shows that many households will be carrying the cost of last Christmas well into the new year, and that is not a reflection of poor money management – it’s a reality of the cost-of-living crisis we’re in. Your kids don’t understand Santa’s been hit by inflation and Christmas 2025 likely cost significantly more, even if you chose to cut back. The important thing now is knowing that support is available if money feels stretched and approaching this support without shame. Taking small steps early, especially speaking to providers, can help prevent problems from growing and keep finances on track as the new year begins.”