- Millions of UK households enter January still repaying Christmas costs, with many not recovering financially until spring
- Creditspring’s consumer finance expert, Tamsin Powell, urges a realistic “financial reset” over restrictive New Year budgeting
- January cost pressures, rising bills and lingering Christmas debt leave families at risk of falling further behind before the year has even begun
6th January 2026: January is meant to signal a fresh start, but for millions of UK households, the new year begins under the weight of a Christmas financial hangover. For many families, January is no longer a reset month – it’s the point where festive borrowing, rising bills and everyday costs collide. New guidance from Creditspring, highlights how families can use January as a reset moment to rebuild confidence, regain control and set healthier financial habits for the year ahead,without resorting to unrealistic budgets or financial self-punishment.
Recent Creditspring research shows that four in ten (41%) UK parents do not financially recover from Christmas until at least February or March, with some still repaying festive costs as late as autumn. This means Christmas spending isn’t a short-term squeeze, but a long shadow that shapes household finances for the year ahead. As household bills continue to rise, and with many families entering January already stretched, the pressure to “start again” financially can feel overwhelming.
The data reveals that two fifths (41%) of parents knowingly spend more than they can afford at Christmas, relying on credit cards, Buy Now Pay Later, overdrafts and loans to bridge the gap. Fewer than one in ten (9%) households feel financially back on track by January, while nearly a quarter (22%) expect Christmas borrowing to follow them well into the summer months.
January is particularly challenging because festive repayments are delayed, everyday essentials still need covering, and many people face a longer gap after being paid early in December. Separate Creditspring polling shows that up to 46 million UK adults have faced an unexpected cost in 2025, such as car repairs (£518 on average), home maintenance (£618) or vet bills (£457). These shocks often arrive when budgets are already at breaking point. A quarter of households (25%) say an unexpected expense of just £200–£500 would force them to borrow or cut back sharply.
Rather than viewing January as a month of restriction or financial guilt, Creditspring is encouraging households to see it as an opportunity for a realistic reset that prioritises stability over perfection.
Tamsin Powell, Consumer Finance Expert at Creditspring, said: “January is when Christmas spending really catches up with people. The decorations come down, but the repayments don’t – and for many families, this is the most financially fragile point of the year. There’s huge pressure to ‘start fresh’, but trying to overhaul your finances overnight often backfires. A healthier reset is about damage control, not perfection. If people can get clarity over what they owe, slow the pace of spending, and put a few simple protections in place so the next unexpected bill doesn’t push them further into debt, that’s a far more realistic way to start the year – and one that actually lasts beyond January.”
Tamsin Powell’s five-step ‘New Year, New You’ financial reset:
- Take one clear financial snapshot -January is about visibility, not guilt. Sit down at the beginning of the month and map out what you owe, what’s due, and what your essential costs are for the month ahead.
- Build a January-first budget – January is often the most expensive month, with higher bills and lingering repayments. Create a budget that reflects reality, not aspiration, and focuses on essentials first. A clear plan reduces anxiety and prevents further reliance on credit.
- Use January deals to reduce future costs, not justify spending – January sales can be genuinely helpful if approached with intention. Focus on lowering future bills, such as switching energy, broadband or mobile providers, renewing insurance more cheaply, or replacing worn essentials you’d already planned for. Avoid ‘false savings’ driven by discounts alone, and always check that a deal supports your wider budget rather than undermining it.
- Prepare for an unexpected cost with an emergency buffer – January is when many households are least able to cope with surprise costs, and with a quarter of households unable to cover a £200–£500 shock, even a small emergency fund can make a meaningful difference. Starting small is far better than waiting for the “perfect” moment, and can reduce reliance on credit or BNPL.
- Ditch extreme rules and plan for realistic spending – No-spend months sound like a good idea to get ahead of overspending, but they often collapse under real-life pressure. Instead, I’d recommend deciding where spending is allowed or necessary, and where it isn’t. Feeling in control of your money is far more sustainable than feeling deprived by it.
For more information on accessing affordable, transparent credit, visit: Flexible Direct Lender Loans | Creditspring
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