What would you do with an extra £713?

According to the Bank of England, households spend around £713 more in December than in any other month of the year.

And while it’s probably inevitable that you’re going to spend more in the run-up to Christmas, it’s those impulsive, and often unnecessary, extras that can be the final nail in the coffin of our festive finances.

The last-minute stocking fillers, the extra bottle of Prosecco “just in case”, a fourth pudding option, another invitation you felt it best not to turn down - these probably aren’t necessary for a cracking Christmas celebration but can almost certainly lead to a serious financial hangover in the new year.

By the time January arrives, many of us are left with stretched budgets, rising debt balances and the stress of trying to catch up.

So why does this happen every year?

Why December spending spirals

Christmas isn’t just expensive - it’s emotionally charged. When there’s more going on and more to pay for, it’s easy for careful budgeting to slip down the priority list.

There’s also the pressure to create the ‘perfect’ Christmas. Nobody wants to feel like they’re cutting corners or missing out, so it’s easy to say yes in the moment and think about how much we’re spending later.

Add to that:

• non-stop sales and ‘last chance’ messaging
• flexible payment options that make it oh so easy to part with your cash
• social media filled with picture-perfect celebrations

And suddenly, overspending feels almost inevitable. 

Simple steps to help you keep more of that £713

You don’t have to ditch the fun to stay in control. Small changes can make a big difference to how you feel come January - helping you enjoy Christmas without starting the new year on the back foot.

• Set a realistic budget and stick to it.
• Make a list of what you actually want to buy or do.
• Agree spending limits with family – try Secret Santa, fewer gifts or buying second-hand.
• Ask yourself if you can afford it without a credit card or Buy Now Pay Later.
• Try budget-friendly socialising like going for a winter walk or watching a film at home instead of expensive meals out.
• Step back from constant ‘last chance’ emails and shopping-heavy social feeds.

Thinking of using a credit card for festive spending? See how much it will really cost you with our Christmas debt calculator.

Creating even a small pause between wanting and buying can help you stay in control, without taking the joy out of Christmas.

Why does it feel hard to say no to spending?

Our guide to the Psychology of Overspending looks at the reasons behind impulse buying, the sales tactics that make us spend more and practical ways to take control of your money.