How to cope with Christmas debt

For many of us, the period after Christmas isn’t just about putting away decorations and avoiding eye contact with the bathroom scales; it’s about dealing with the financial hangover from overspending and borrowing. Debt charities across the UK have reported an unprecedented rise in calls for help in early January, with people contacting services outside normal hours and in numbers higher than last year.

At the same time, Bank of England figures show that credit card borrowing rose sharply in the run-up to Christmas. Annual growth of credit card borrowing hit 12.1% in the year to November 2025, the highest in nearly two years. It seems that many people dipped into credit to cover festive costs and may now face higher bills.

Whether the harsh reality of your post-Christmas credit card bill shocked you, or you’ve exhausted your emergency fund and left yourself with nothing to fall back on, you’re not alone. But there could be ways to regain control and rebuild your financial footing without panic.

What the numbers tell us

The post-Christmas period is always busy for debt charities, but 2026 has been particularly intense. StepChange reported high website visits, with over 15,000 people exploring options over New Year’s Eve and 1 January alone. On Christmas Day, almost 4,000 people accessed their website for advice.

Calls to the National Debtline have also surged. Monday 5 January 2026 was the organisation’s busiest day ever, with 1,365 calls coming in from people seeking help and advice. Many of these enquiries focus on priority bills, such as rent, council tax and energy, showing that people are struggling to cover essential costs after the festive season.

The figures couldn’t be clearer. Post-Christmas debt is affecting thousands of households. If you can relate, here’s what you can do about it.

Practical steps to cope with Christmas debt

After the festive spending, it can feel overwhelming to see bills and credit card balances piling up. These practical steps will help you start regaining control, reduce interest, and make repayment more manageable.

Stop ignoring it

If you overspent at Christmas and the amount you owe to creditors is higher than expected, it can be tempting to avoid dealing with it. But when everyday costs like energy, council tax or your mortgage are due as well, putting it off can make things escalate quickly.

If you cannot cover everything this month, contact the companies you owe money to as soon as possible. They may agree to smaller, more manageable payments if you explain your situation and acting early usually gives you more options.

Here are some examples of support and regulations designed to protect customers in financial difficulties:

• Energy: Under Ofgem rules, suppliers must work with you to agree a repayment plan you can realistically afford. They can also provide information on how to access hardship funds. Ofgem offers helpful guidance if you are struggling to pay your energy bill.

• Mortgages: The Financial Conduct Authority (FCA) expects lenders to support customers who have missed payments or are worried about future ones. Options can include extending the mortgage term or temporarily reducing monthly payments. But any changes may mean higher payments later or paying more overall, so they should be considered carefully. If you can keep up with your payments, it’s best to do so.

• Credit cards and loans: Firms regulated by the FCA are required under Consumer Duty to treat customers in financial difficulty fairly. This can include agreeing on manageable repayment plans, pausing or reducing interest and charges, or offering other support to help you get back on track.

Start by gathering the details of what you owe and putting together a simple budget so you know what you can afford. It might help to focus first on priority debts such as rent, mortgage arrears, council tax and energy bills.

It may feel daunting, but most organisations would rather agree on a sensible plan than see the situation worsen. Speaking up early can help you avoid extra charges and unnecessary stress.

Consider switching to a 0% interest balance transfer credit card

If you are carrying high-interest credit card balances, moving them to a 0% balance transfer card can help reduce interest costs and give you breathing space. However, eligibility criteria apply, and acceptance is subject to status and credit checks.

Make sure you check the length of the 0% period, any balance transfer fees, and how long it will realistically take to repay. A clear repayment plan is essential to avoid falling back into debt. Remember, missing minimum payments can mean losing the 0% offer and incurring higher interest rates.

Use a 0% interest purchase credit card selectively for urgent needs

If your savings are gone and an urgent bill comes in, a 0% purchase card can cover costs like a broken boiler repair, a large vet bill, or an eye-watering MOT, as long as you have a plan to repay it quickly. Treat this as a short-term solution, not a long-term fix. You may also have the option to make a balance transfer to this card, though not all cards offer this feature, so be sure to compare.

Reach out for free advice

There is no shame in asking for help. Debt charities provide confidential, free support for anyone struggling with money. Talking to them can give you clarity, reduce stress and help you take practical steps to get back on track financially. They can explain your options, help you prioritise bills, support you with budgeting and work with you to create a realistic repayment plan. In some cases, they may also be able to negotiate payment breaks with creditors on your behalf.

Two key organisations offering free, confidential support are:

• StepChange: www.stepchange.org | 0800 138 1111

• National Debtline: www.nationaldebtline.org | 0808 808 4000

If you live in England or Wales, you may be able to apply for Breathing Space – officially called the Debt Respite Scheme. It’s designed to give you some temporary breathing room while you get debt advice and work out a longer-term solution.

If you’re accepted, you get up to 60 days of protection. During that time:

• Your creditors must stop contacting you to chase the debt.

• Most interest, fees and charges are frozen.

• Your energy supplier cannot force-fit a prepayment meter without your permission or use one to recover existing debt.

If you live in Scotland, there’s a similar option called a debt moratorium. This also gives you a short period of legal protection, during which creditors cannot take action to recover what you owe.

It’s not a way of writing debt off, but it can give you valuable time to pause, get proper advice and make a realistic plan – without pressure piling on.

If you’re struggling to make ends meet and find that paying for essentials like groceries and household food is getting difficult, you can access cost of living support and guidance on the Citizens Advice website.

Tips for getting back on your feet

Once the immediate pressures ease, it’s time to plan ahead. These tips show how to build a small buffer, manage monthly spending, and prepare for future expenses so you’re in a stronger position next year.

Build a small emergency fund

Once the immediate pressures ease, aim to set aside a little each month for those sudden costs that crop up from time to time. Even a small buffer can reduce the need to rely on credit when unexpected bills appear and give you peace of mind.

There are current accounts that make this easier by letting you set up regular savings transfers, such as moving a fixed amount each month or rounding up card payments to the nearest pound and putting the extra into savings. Over time, these small amounts can build into a useful emergency fund.

Budget for next Christmas

Set aside a small monthly amount specifically for festive spending or explore the various Christmas savings clubs available. Some supermarkets such as Tesco also offer their own Christmas saver schemes throughout the year. Planning ahead can help you avoid last-minute borrowing and make next year’s celebrations much less stressful.

Rethink gift giving

Remember, gifts don’t have to be expensive store-bought items. Home-made presents, baked treats, or shared experiences can be more meaningful and easier on your wallet.

Review monthly spending

Look at subscriptions, utility bills and recurring payments. Cancel anything you don’t need or switch to cheaper options to free up extra cash for debt repayment or savings.

Did you know? Over 20 million UK adults have signed up to a subscription without even realising it. And of those, around 4.7 million are still paying for something they didn’t ask for, according to the latest figures from National Trading Standards.

Taking control after Christmas

Feeling the weight of post-Christmas debt can be stressful, but it doesn’t have to define your year. By taking practical steps – building a buffer, planning ahead, reviewing spending, and seeking advice when needed – you can regain control, reduce interest, and start the year with your finances on a steadier footing. Remember, help is available, and even tiny changes now can make a big difference over the months ahead.