More than one in four will struggle to afford Christmas

New YouGov polling by StepChange Debt Charity reveals more than one in four adults (27%), equivalent to around 14.3 million people, will struggle to afford Christmas this year, which rises to almost one in three (31%) among parents with children at home.

With the cost of living still stubbornly high and millions struggling to make ends meet, the charity is urging consumers to tread carefully with borrowing and has offered tips to those worried about their finances this Christmas.

In total, one in twelve (8%), around 4 million British adults, will struggle to afford Christmas and will be relying on credit to fund their festive spending. Of those using credit six in ten (60%) say their borrowing will be higher than last year. Almost nine in ten (87%) say they are borrowing to afford Christmas due to the higher cost of living.

Whilst more than two in five (43%) say it will take them more than 6 months to repay the credit they use this Christmas Almost one in five of those (17%) say it’ll take more than a year.

When it comes to saving habits in the lead up to the festive season, almost one in four (23%) people who celebrate Christmas cannot afford to set money aside for it, while over one in three (36%) people have been setting money aside throughout the year for Christmas.

StepChange Debt Charity says Christmas can always be a pressurised time for people’s finances, and the charity tends to see a spike in people in need of debt advice in January.

Vikki Brownridge, CEO at StepChange Debt Charity, said “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. 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.”