Seven things to do now if Christmas debt is dragging you under

If you’re worried about the state of your bank balance after Christmas, you’re not alone. More than 6,000 people used our service between Christmas Eve and Boxing Day – up 29% on the previous year.

More than one in five of those sought help between 10pm and 3am, suggesting that money worries are keeping a lot of people up at night.

This trend continued into the New Year, with just shy of 6,000 people reaching out to us between New Year’s Eve and New Year’s Day - a 14% increase on the same time in 2024-25. Again, one in five of these individuals was looking for help when most people are safely tucked up in bed.

Our head of advice, Sebrina McCullough, said:

"The numbers we’ve seen over Christmas and New Year are unprecedented. We hear time and time again how pressure to spend during the festive season ends up with people lying awake at night, worrying about money. It’s a powerful reminder that the holidays don’t provide a break from financial stress and can prove a breaking point for many."

Seb has urged people worried about making ends meet in January to get debt help as soon as possible.

"Many people use our online journey, which is available day and night, but for those who prefer to speak to an adviser, our team is ready to provide practical, non-judgmental support."

Seven tips to get your finances back on track

If you’re struggling to cover your costs in the wake of Christmas, here are our top tips.

1. Create a budget

Creating a budget and being strict when it comes to tracking your spending is the first step to taking back control of your finances. When you list all your income and expenses, it becomes clear where your money is going and if you can make cuts. This will also show you whether your debt repayments are manageable.

2. Prioritise debts

It’s important to tackle debts in the right order. Bills like rent or mortgage, council tax and gas & electricity must come first, because falling behind here can have the most serious consequences. Once these are covered, focus on high-interest debts like credit cards, as paying these off sooner saves money over time.

3. Get professional help

Getting help from a trained debt adviser can make a huge difference. Expert advice helps you understand your options, negotiate with creditors and work out a realistic plan to regain control. You don’t have to face debt alone, and guidance from a professional takes the stress out of figuring out what to do next.

4. Reduce unnecessary spending & boost income

Small changes can free up cash quickly. Look at subscriptions you no longer use, shop around for better deals on utilities, see if you qualify for social tariffs or consider ways to earn extra money, like side hustles or freelance work. Even small adjustments can make a noticeable difference for debt repayment or building a small safety net.

5. Talk to your creditors

Being open with lenders is key. Letting them know you’re struggling can unlock options like payment breaks, reduced payments or interest freezes. Most lenders would rather work with you than see your account go into default, but they can’t offer help if you don’t reach out.

6. Protect your mental health

Debt can be stressful, so it’s important to look after your mental health. Confiding in someone you trust can reduce the mental burden of debt (this can be a friend or family member, or a debt adviser). Taking care of your emotional wellbeing while managing debt will make the whole process easier to navigate.

7. Make sure you’re not missing out

Millions of people miss out on money they’re entitled to each year – around £24bn goes unclaimed annually in the UK. Taking five minutes to check what support you’re eligible for, including benefits, tax credits and grants, could free up extra cash and ease your budget.