One in four people will struggle to afford Christmas this year

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. Whilst 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).

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.”