- When it hits
- Statements and deferred payments land in January and February
- Common sources
- Credit cards, BNPL, store cards, overdrafts
- Priorities
- Housing, council tax, energy and food come first
- First step
- Contact lenders before you miss a payment
On this page
Why Christmas debt happens
Costs build up over several weeks: presents, food, travel and nights out. Many people use credit cards, store cards, catalogue accounts or buy now pay later, so the bills arrive in January when money is already tight after December.
Find out what you owe
- Check every card and account statement, including store cards and overdrafts.
- List all buy now pay later orders and their due dates. See our BNPL guide.
- Look out for 0% offers or deferred interest that are about to end.
- Check your credit report for accounts you have forgotten.
Talk to a free adviser first
An adviser can look at your whole budget, deal with creditors for you and explain which option suits you. Get free debt advice.
What to do in January
- Work out a realistic budget with your essentials first. Our budgeting guide can help.
- Pay rent or mortgage, council tax, energy, food and travel before credit.
- Contact lenders before you miss a payment and ask for a lower payment or a pause.
- Avoid new credit, including high-cost short-term loans, to pay off Christmas debt.
- If you have several debts you cannot manage, ask about a debt management plan or other options.
If money is very tight
Ask your council whether it runs a local hardship or crisis fund, and check you are claiming every benefit you are entitled to. Free debt advice is available from StepChange, National Debtline, Citizens Advice and MoneyHelper.
Avoiding the same problem next year
- Set a total budget for Christmas and a monthly saving to build it.
- Use a savings account you control. Be wary of Christmas clubs or savings schemes you cannot check, as some have collapsed and members have lost money.
- Be careful with buy now pay later at checkout. Several small plans can add up.
- Make a list of gifts and costs before you shop.
Frequently asked questions
I have not paid my December credit card. What now?
Contact the lender as soon as you can. Tell them what happened and ask for a payment plan or help while you are in difficulty.
Should I take out a loan to clear Christmas debt?
Only if it is clearly cheaper and you can afford it. Avoid payday loans and anything secured on your home. Check with an adviser.
Can I get a payment holiday?
Some lenders offer short breaks or reduced payments if you ask. It is not automatic.
Does Christmas debt go on my credit file?
Credit card and loan balances do, and missed payments can too. Buy now pay later practice varies by provider.
What if I cannot pay for essentials?
Prioritise housing, energy and food, speak to your council about local help, and get free advice quickly.
This guide gives general information and is not personal advice. Rules and limits change, so check with a free adviser before acting. Last reviewed 11 November 2026.