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4 min read

Struggling with Christmas Debts? Here’s how to Pay it Back

Christmas can be both a magical time and a challenge as expenses can add up quickly. We’re often expected to spend beyond our means especially if we’re hosting or spending extra on travel to see friends and family. And on top of that, you have all the presents to buy!

An image of a man carrying a bag of debt.

Christmas debts can quickly become overwhelming, and we might not consider how long we will be paying back our debts. In an article for Wales Online in Jan 2022, Rachel Hains commented that research showed the average shopper requires four months to pay Christmas debts of £439. This might not seem like a lot of money, but it can be tricky when we already have debts that we are repaying. So, what are your options?

Some options you could consider include:


Christmas debts may just be the tip of the iceberg. With credit card debt, store card debt and catalogue debts all adding up and possible previous debts, you may be struggling to keep on top of it all. If your unsecured debts total over £6,000, you may want to consider an IVA. This is one debt solution that allows you to consolidate all your debts to different creditors into one, affordable monthly payment.


If your unsecured debts total less than £6,000 but you’re struggling to pay them back, you may want to think about a Debt Management Plan. This could be beneficial because a financial advisor will work with you to create a plan that will allow you to budget and offer an affordable payment to your creditors, but it may not end up being the quickest way to repay your debts.


Or if you feel confident doing it without the help of an expert, you can create your budget. Sometimes it can be a struggle to keep to a budget but cutting out costs such as extra subscription fees, beauty treatments and it’s been said before, that morning cup of coffee. A few months of a strict plan could see you back on your feet, you just need to be willing to stick to it.

Start saving for next year

January might seem early to start putting money aside for Christmas ’22 but if you want to have a worry-free Christmas when it comes down to money – there’s no time like the present to start saving. Take some time to sit down and work out what money you might need and then aim to save that throughout the year. In the Wales Online article, Rachel Hains reported that people normally spend £740 more in the Christmas month – so that might be a good target. The most important thing is to avoid taking out further loans and making your Christmas debts worse.

If you wish to discuss your options, contact one of our friendly team.

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