ONE in four people in Scotland will struggle to afford Christmas this year, with more than one in 12 relying on credit to cover the cost.
Research by debt charity StepChange has found that among people with children at home, more than one in three (35%) will struggle to afford Christmas, while one in 12 people will be relying on credit to fund their festive spending.
Of the one in 12 adults intending to use credit to cover Christmas expenses, almost four in ten (38%) will be using Buy Now, Pay Later, a two-percentage point rise compared to last Christmas (36% in 2023).
Now the charity, which is predicting a rise in the number of people looking for help with problem debt in January, is encouraging those struggling to reach out for support as soon as possible.
“We know that the Christmas period can be particularly challenging for those facing financial difficulty or debt problems,” said chief client officer Richard Lane, above.
“People may feel pressured to make Christmas with their loved ones special through gifting and spending money.
“However, we know all too well that the repercussions of relying on credit over the festive season can rear its head in the new year.”
He added that the impact of rising energy bills and continually high housing costs had also taken a toll on household finances this year, causing disposable income to be stretched over the festive season.
“For those thinking of using credit cards, Buy Now, Pay Later or other forms of borrowing this Christmas, we would urge you to pause and really consider whether repayments will be affordable a month or two down the line,” said Lane.
The charity’s top three tips for people worried about their finances this festive season are to determine in advance on the amount that can be spent over the festive period; keep an eye out for deals but do not buy anything that is not needed and think carefully before borrowing money.
“Try not to get drawn into short-term high cost credit, or options to buy now and pay later if it’s not affordable,” said Lane. “If it’s going to take many months to repay what you borrow to pay for Christmas, it’s worth pausing for a moment to think about whether your friends and family would really want you to suffer financially as a result of your generosity.”
“If you are worried about debt, now or in January and beyond, it’s never too soon to reach out for help. Free debt advice and support is available from charities like StepChange.”
