Thousands of people are struggling financially and searching for help with their Christmas debt as repayments land through January, it has been revealed. Nearly 4,000 were actively looking for advice on dealing with ‘unmanageable debt’ over Christmas – including on Christmas Day itself.
And with a rising number of people seeking support over the festive period, money experts at a free advisory service have warned: “The cost of living crisis is far from over.” Search for ‘free debt help’ always spikes in January after Christmas, but this year “continued pressure on household finances” has sparked an increase in people seeking support.
Sebrina McCullough, director of external relations at Money Wellness said: “We always see an increase in the number of people seeking free debt help in January after Christmas debt repayment demands land. But this year we’ve seen an increase in the number of people seeking support over the festive period, with around 700 people starting our online debt advice journey over the three days.
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“This is the result of continued pressure on household finances. With energy bills set to rise again in January and other essential bills to go up in April, we believe the New Year could be particularly challenging for millions of households. The cost of living crisis is far from over.
“Anyone struggling to make ends meet or worried about what the New Year will bring for their finances should seek free, impartial support. There are several solutions available depending on your circumstances. No one shouldn’t feel they need to struggle on alone.”
According to the free money advisory service, nearly 4,000 people searched for debt help over Christmas. 3,994 people visited Money Wellness’ website on Christmas Eve, Christmas Day, and Boxing Day for advice on dealing with unmanageable debt.
Almost 2,000 (1,835) people in London searched for support, followed by 461 in the Midlands. 310 people in the North West read up on debt help, with Manchester and Liverpool seeing the greatest number of searches. This was followed by 202 in Yorkshire, 183 in East England, 175 in the South West, and 101 in the North East.
Wales recorded 88 searches with 66 coming from Scotland and Northern Ireland each. The figures come ahead of another year of rising living costs. Food prices are expected to continue increasing throughout 2025, along with energy, water, council tax, TV licence, and broadband bills.
Money Wellness has released a five-point list advising anyone worried about money, from reviewing your budget to maximising your income by claiming benefits.
Review your budget The first step to getting your finances under control is creating a budget. Use free online tools to help you work out how much you have coming in and going out each month. Once you’ve done this, you can see if there are areas where you can cut back. Take immediate action if you find yourself with a budget deficit, with more money going out than you have coming in.
Save on household bills It’s possible to make significant savings on a range of household bills, from energy to broadband, TV, and insurance, by shopping around and switching providers. You might also be eligible to move to a social tariff, which could reduce some of your household bills by as much as 50 per cent. Eligibility for social tariffs depends on the type of service and the provider.
Generally, you could qualify if you receive a means-tested benefit or disability support, such as universal credit or personal independence payment (PIP), have a health condition, or live on a low income.
Maximise your income GBP23 billion worth of benefits went unclaimed last year. Many people think they don’t qualify because they’re working, but this isn’t the case. Around 71 per cent of all people claiming universal credit also have a job. Check to see if you could quickly boost your income to help with living costs by using free online benefit tools.
Grant help There are hundreds of grants and other support available to help with living costs. Some are offered by the government and delivered by your local council, such as the household support scheme, which could give you cash or vouchers to help with energy and food bills. You might also be able to get help from charitable grants depending on your background, circumstances and needs.
Debt help If you’re struggling to pay essential bills or your debts are more than your monthly income, you should seek free debt support. Don’t bury your head in the sand; the earlier you tackle problem debts, the easier they are to deal with.
Are you struggling with debt? We would like to hear your experience. You can contact us by emailing stephanie.balloo@reachplc.com