Christmas Spending and Debt: What to Do If You’re Struggling

 

Yes, Christmas is supposed to be the most wonderful time of year. Let’s be brutally honest though. It also tends to be the most expensive. We offered tips and advice in our last blog (and one last Christmas, too) but it’s easy to fall into the overspending trap despite our best intentions.

Between gifts, food, travelling, parties, school events and the pressure to make it magical, it’s easy for costs to spiral without really noticing.

That’s why many people turn to catalogues, store cards, Clearpay and Klarna-style pay-later options and credit cards to spread the cost. It seems so easy. December you is full of optimism that next month will be easier. And while they can feel helpful at the time, the reality often hits in January when the bills start arriving and the forgotten instalments put a big dent in your balance. This is even worse with storecards and some catalogues, where the APR is eyewatering.

If you’re worried about catalogue debt, store card balances, or general overspending over Christmas, you’re absolutely not alone. Plus, you have more options than you might think. Here’s a friendly guide to help you understand these types of debt and what you can do next.

Why Catalogue and Store Card Debt Builds Up So Easily

Catalogue accounts and store cards are designed to be quick, convenient and tempting. We’ve all been in shiny department stores, surrounded by signs promising ‘pay nothing today.’ Sales staff are often on a hefty commission to sell credit.

Accounts and cards are designed to be easy. That’s why so many people use them, especially around Christmas.

There are several common reasons they can cause big problems:

• You can buy now and pay later, so it’s all too easy to forget the total cost.
• Interest rates are often far higher than normal credit cards or bank loans.
• Minimum payments barely reduce the balance, leading to ‘persistent debt.’
• Seasonal offers and discounts encourage you to spend more that you can comfortably afford.
• It’s easy to open multiple accounts without realising the impact.

Does this sound horribly familiar? Please don’t worry – you’re not alone. These debts are some of the most common ones we’re asked for help with after Christmas.

Other Common Christmas Debts

Alongside catalogue and store cards, many people find themselves juggling:

• Credit cards
• Overdrafts
• Buy Now Pay Later products (Klarna, Clearpay etc.)
• Payday or short-term loans which have crippling interest rates.
• Personal loans
• Utility arrears after December payments are missed
• Buy now, pay later deals which accrue huge amounts of interest if not settled at the end of the ‘free’ period.
• Gifts bought on finance (phones, electronics, sofas, appliances)

Most debt doesn’t come from one big purchase. Usually, debt comes from lots of little ones that add up over time, especially during the festive season. It’s – almost literally – a snowball effect.

 

How Overspending at Christmas Happens

It’s Not a Personal Failure. Remember that.

It’s important to say this clearly: Struggling after Christmas doesn’t mean you’re bad with money. It means you’re human. It means you just wanted to do your best.

The festive season brings:

• Pressure to give children a great Christmas
• Social expectations
• Emotional spending
• Limited time to shop around
• Higher food, travel and heating costs
• Marketing everywhere encouraging us to buy

Life is expensive. Christmas turbo-charges that expense – and that’s on top of the burgeoning heating bills throughout the winter months. Lots of people rely on credit to get through it. So, no. You’re not alone, and you’re not the only one feeling overwhelmed now.

Is Christmas Debt Becoming a Problem?

Borrowing and relying on credit are commonplace. However, there are signs to watch out for if you think it’s becoming a problem. You might recognise some of these:

• Making minimum payments but the balance never really changes
• Using one form of credit to pay off another
• Relying on overdrafts to get to payday
• Feeling stressed about opening letters or checking your bank
• Paying late fees or missing payments
• Not knowing exactly how much you owe overall

If any of this sounds at all familiar, it’s a good time to get some free, confidential advice.

What You Can Do About Catalogue or Christmas Debt

There are some practical steps to regain control:

1. List what you owe, even roughly. Just knowing the numbers can reduce anxiety and help you see clearly.

2. Contact your creditors early. Catalogue companies and lenders will often help with affordable payment plans if you tell them you’re struggling.

3. Prioritise essentials: Rent or mortgage, food, utilities, and council tax come first. Unsecured debts come after those.

4. Consider a formal debt solution. If you can’t realistically clear your debts on your own, there are regulated options available. These aren’t without impacts, so expert advice is essential.

Each person’s situation is different. We can help you understand what’s best for you.

You Don’t Have to Tackle Debt Alone

January can feel overwhelming when the bills start arriving. You may feel as though you simply don’t know where to turn. Support is available, and there are workable solutions for almost every situation. The most important thing is to ask for help – and that’s what we’re here for.

Catalogue debt, store cards, Christmas overspending – they’re all incredibly common. They’re all things we deal with every single day.

If you’re worried or unsure where to start, we can talk you through your options in a confidential, friendly chat. No judgment and no pressure, ever – just clear and expert guidance to help you feel in control again. Contact us. We’re here to help.