1 in 4 Brits ‘will use credit to cover Christmas costs’

Millions of Brits are thinking of using credit to get through the festive season.

According to Yorkshire Building Society (YBS), nearly one in four (24%) people plan to use some form of credit to cover their Christmas expenses.

Many are confident they’ll be able to pay off any festive debt fairly quickly.

In fact, more than half (51%) said they expect to clear it within three months.

But almost a quarter (24%) think it could take them up to a year.

Brits feeling stressed about money

This comes at a time when a growing number of people are feeling worried about money.

More than half of those polled (55%) said they currently feel stressed about their finances.

That’s 10% higher than in 2023.

As a result, many people intend to spend less than they did last Christmas.

The average household is expected to spend an average of £596 on celebrating the festive season, down from £774 last year.

Estimates also suggest that the number of people planning to spend £1,000 or more has fallen from 51% a year ago to just 15% this year.

YBS described this as “a dramatic shift in consumer behaviour”.

“With household budgets under pressure and financial stress rising, it’s clear many are feeling the pinch,” said Tina Hughes, YBS’s director of savings.

What can I do if I'm struggling?

If you feel weighed down by the cost of Christmas, there are practical steps you can take to ease the pressure.

Look at your spending

Make sure you know how much money you have coming in and where it’s going.

You can then prioritise your spending and see where you can make savings.

Check out our guide to how to create a budget to get started, and give our budget planner a try - it’s free and easy to use.

Check what benefits you could claim

You might be entitled to financial support from the government to help you with your living costs.

Use our benefits calculator to see what you could be eligible to receive. 

Deal with problem debts

If you’re struggling with debt, contact us for confidential, practical and impartial debt advice.

Meet our free Christmas debt calculator

To help you take control of your festive finances before costs snowball, we’ve also launched a free interactive Christmas debt calculator.

It shows you exactly how long your festive borrowing could take to repay and how much interest it might cost.

Click here to find out more about how it works.