When Christmas credit catches up with you in January

January 5th, 2026

For many people, Christmas is paid for with credit. Credit cards, buy now, pay later, overdrafts, or short term borrowing help cover gifts, food, travel, and the extra costs that come with the festive period.

Then January arrives, and reality hits.

Statements land, balances look higher than expected, and the pressure to start repaying everything at once can feel overwhelming.

If this sounds familiar, you are not alone, and it does not mean you have failed with money.

Christmas spending on credit is common in the UK

UK data consistently shows that a large number of households rely on credit to get through Christmas. Research from the Money and Pensions Service and other financial organisations has found that millions of adults use borrowing to cover festive costs, particularly during periods of high living costs.

In recent years, the rise of buy now pay later options has also made it easier to spread Christmas spending into the new year.

While this can help in the short term, it often means January comes with multiple repayments starting at once.

For many people, the issue is not reckless spending, but timing. Christmas costs arrive all at once, while income does not increase to match.

Why January feels so much harder

January is already one of the toughest months financially. Alongside credit repayments, people often face:

higher winter energy bills

delayed Christmas bills appearing

reduced income or fewer work hours

emotional burnout after a busy period

Research shows that financial stress peaks in January, and debt-related worry is a major contributor. When several repayments start at the same time, it can feel like there is no breathing space.

This stress can make it harder to open letters, check balances, or ask for help, which can make the situation feel worse than it actually is.

Feeling stuck does not mean you made a bad choice

It is easy to look back and wish Christmas spending had been different. But hindsight does not help you move forward.

Many people use credit at Christmas to protect family traditions, avoid disappointment, or cope with pressure to provide. These decisions are often emotional and social, not careless.

What matters now is not what you spent, but how you deal with it from here.

Practical steps that can help in January

If Christmas credit is weighing on you, small steps can make things feel more manageable.

Start by getting everything in one place. Write down or list:

each credit balance
minimum payments
interest rates
payment dates

This can feel uncomfortable, but clarity often reduces anxiety.

Next, prioritise essentials. Make sure rent or mortgage, energy, council tax, and food are covered before tackling extra repayments.

Missing essential bills can cause more problems than carrying credit for a little longer.

If repayments feel unmanageable, contact lenders early. Many credit providers offer temporary support, such as reduced payments or breathing space, especially if you explain the situation.

Most importantly, avoid taking out more credit to cover existing repayments if possible.

This can increase stress and make the cycle harder to break.

You do not have to fix everything at once

One of the biggest myths about January money is that everything must be sorted immediately.

In reality, spreading repayments over a longer period can be safer and more sustainable than trying to clear debt quickly and running out of money.

Behavioural research shows that people are more likely to stick with a plan when it feels realistic and flexible. Progress is about stability, not speed.