The 3 money mistakes that will wreck your January

January is officially the most miserable month for your money. Christmas has emptied your bank account. It’s freezing, so your energy bills are sky-high. The first debt repayments for December’s excesses are due. And payday feels like a lifetime away. Millions of people are struggling, and for some, January can set off money problems that last all year.

Here are the three biggest money mistakes we see that trap people in debt - and how to avoid them before it’s too late.

1. Ignoring debt letters and hoping the problem disappears

We’ve all done it. That email, app alert or text pops up, and you ignore it. Out of sight, out of mind, right? Wrong.

Ignoring debt notifications is one of the most expensive mistakes you can make. Around one in four people admit to doing it. Missed alerts can spiral into extra charges, default notices and even enforcement action. Priority debts like council tax, energy bills, and TV licences can be particularly problematic if left unchecked.

The fix is simple. Open the notification. Check who it’s from, how much is owed and any deadlines. Even if you can’t pay straight away, at least you’ve started to deal with it. If you’re worried about how you’ll pay bills or have fallen behind, speak to us. We can help you take action and work with you to make debt feel manageable again. Don’t let fear leave you with a bigger bill in the long term.

2. Falling for the January sales trap

‘Up to 70% off!’ ‘Buy now, pay later!’ ‘Hurry, last chance!’ Sound familiar? Retailers know January is when people are vulnerable - tired, broke and craving a fresh start. UK shoppers spend around £6bn in January sales alone. And nearly 40% regret at least one purchase.

Many ‘discounts’ aren’t even bargains. Some prices are inflated before Christmas and ‘reduced’ later. You think you’re saving money, but you could still be spending over the odds.

Before buying anything, ask yourself: Am I only buying it because it’s reduced? Do I really need it? Will I regret it when the credit card bill lands? Missing a sale may sting, but unmanageable debt is a much heavier burden to bear.

3. Relying on credit to get through the month

By mid-January, credit may feel like a lifeline. You’re short on cash, bills are due and payday is still weeks away. Overdrafts, credit cards, buy now, pay later - they all seem like easy fixes. But the reality is harsh.

The average UK household carries around £2,600 in credit card debt, with many cards charging APRs of 30% or higher. Even small balances can spiral fast. And missed buy now, pay later payments can damage your credit file, making it harder to borrow in the future.

Safer alternatives exist. Some creditors will offer temporary breathing space. You might be entitled to benefits, grants, or hardship support that you’re currently missing out on. Or if your debt problem is more serious, we can help you find the right solution and avoid borrowing that becomes a trap.

Don’t let January ruin your year

January is tough. There’s no sugarcoating it. But small actions now can prevent short-term money struggles from turning into long-term debt. Open your letters. Think twice before splurging in sales. Get help if you can’t pay your bills.