Christmas Debt: The True Cost of Christmas
When you’re under financial pressure, we understand that Christmas can be difficult.
Between buying presents, food, decorations and more, it can all quickly add up to being an expensive and overwhelming time of year.
At Lowell, we know that our customers sometimes struggle around the holidays. The purpose of this blog is to highlight the financial impact of Christmas, and what support is available if you’re worried about debt before, during, or after the festive period.
In this blog, we’ll cover:
This content is intended to be an impartial guide about the financial impact of Christmas. Lowell Financial Ltd does not offer financial advice. You can find out more about the organisations you can contact in our guide on debt help and support.
How much does Christmas really cost?
The Bank of England found that a typical household in the UK spends just over £2,640 per month. But in the run-up to Christmas, our spending habits change. We spend on average, almost £713 more in December (29% more than in a typical month). [1] But it’s important to remember that overspending now can lead to financial struggles later.
The lingering cost of Christmas
It’s not too surprising that lots of us fund Christmas through other means than just our November wages.
42% of Brits dip into their savings to afford Christmas[2], but if building savings is difficult, many people find themselves turning to credit-based options.
We conducted research[3] into the financial impact of Christmas. Our survey found that:
- 74% of UK families relied on credit cards and Buy-Now-Pay-Later schemes to help cover the cost of Christmas in 2024.
- On average, it has taken families 3.8 months to clear their festive debt.
- However, 15% of households are still repaying these debts and expect it to take six months or longer to fully recover – meaning they’ll still be paying off Christmas well into the summer.
Although relying on credit is tempting, it's important to remember that if you're unable to keep up with the scheduled repayments, it could have an impact on your credit score. For more information, check out our guide to understanding your credit score.
What support is available?
If you're a Lowell customer and you're feeling worried about Christmas debt, please get in touch with us and speak to our agents who will listen and be considerate of your circumstances.
However, if you don’t feel comfortable speaking to us over the phone about your concerns, and would like to seek support from elsewhere, we have information about the organisations you can contact for free independent advice and support. These organisations include but are not limited to:
- StepChange Debt Charity have pulled together their top tips to manage overspending at Christmas.
- Money Wellness have provided tips on how to do a post-Christmas money detox, to refresh your finances and help you regain control once the festive period has ended.
- Citizens Advice have outlined the steps you can take to keep your festive spending under control and avoid falling into debt.
Finally, if you're worried about Christmas and would like some help working out a budget, check out our free budget calculator. It doesn't take long to fill out, and it might help you better understand your incomings and outgoings.
Published by Libby Davies on 6th December, 2021
Edited on 10th April, 2025
Sources:
[1] – How much do we spend during the festive season? | Bank of England
[3] - A survey of 1,000 UK parents (18+), survey carried out online by OnePoll in September 2024