How to Avoid Post-Christmas Debt: A Simple Guide for the New Year

Christmas is a wonderful time of year, but for many people the joy of the festive season can be followed by stress when the bills arrive. January often brings higher energy costs, credit card statements and Buy Now Pay Later reminders — and it can all feel a bit overwhelming.

At Citizens Advice Stevenage, we see many people looking for support after Christmas, and one thing is clear: YOU ARE NOT ALONE. The good news is that small steps can make a big difference. Here is some straightforward advice to help you stay in control of your money as we head into the new year.

Start by finding out what you owe

Knowing your full situation can help you plan ahead and avoid surprises. We understand it can be tempting to ignore bills when they arrive in January, especially if you’re worried about what they might say. But facing them early is the best way to take back control.

Try to open every letter, email or message about money. Write down the total you owe, when each payment is due, and who you owe it to. Include everything — credit cards, catalogues, loans, overdrafts and Buy Now Pay Later.

Helpful Link, Check your debts: https://www.citizensadvice.org.uk/debt-and-money/budgeting/check-your-debts/

Focus on the most important bills first

Some bills are more important than others because missing them can cause serious problems. These are called “priority debts”.

They include:

• Rent or mortgage

• Council tax

• Gas and electricity

• TV licence

• Certain fines

If you’re struggling with these, it’s important to get help sooner rather than later.

Helpful link, Which debts are priority?: https://www.citizensadvice.org.uk/debt-and-money/budgeting/which-debts-are-priority/

Try not to borrow more money if you can avoid it

When money feels tight, it can feel like the only option to take out more credit to fill the gap. But borrowing more (especially from high-cost lenders) can make your situation harder in the long run.

If you can, avoid payday loans, borrowing more on credit cards, or taking out new Buy Now Pay Later items before you’ve cleared the old ones.

Instead, check whether there are other ways to make things easier, such as talking to your creditors or speaking to an adviser.

Helpful link, Borrowing money safely: https://www.citizensadvice.org.uk/debt-and-money/borrowing-money/

Make a simple budget to guide your next few months

After Christmas, many people find their spending is higher and their income feels stretched. Creating a simple budget can give you a clearer picture of where your money is going.

Add up what you spend on:

• Household bills

• Food and travel

• Debt repayments

• Subscriptions

• Treats or extras

Seeing everything in one place can help you spot areas where you might be able to make small savings.

Helpful link, Use the Citizens Advice Budgeting Tool: https://www.citizensadvice.org.uk/debt-and-money/budgeting/budgeting-tool/

Look for small ways to reduce your costs

You don’t need to make huge changes to save money. Sometimes simple adjustments can help you get through the next few months more comfortably.

Some examples of this could be cancelling any subscriptions you have never or no longer use, Pre plan your meals and write a shopping list, switch to cheaper phone, broadband or insurance provider. Make use of warm spaces or community support in your local area. Even trimming small amounts can add up.

Helpful link, Tips to save money: https://www.citizensadvice.org.uk/consumer/how-to-save-money/

Be careful with Buy Now Pay Later

Buy Now Pay Later (BNPL) can look helpful after Christmas, but it can also make debts grow quickly.

Before agreeing to a (BNPL) scheme we advise you to:

• Know the dates your payments will leave your account

• Have enough money to cover them

• Avoid taking on new BNPL until others are fully paid off

Helpful link, Buy Now Pay Later explained:https://www.citizensadvice.org.uk/debt-and-money/borrowing-money/buy-now-pay-later/

Reach out for help — you don’t have to do this alone!

If you’re feeling stressed or worried about money, Citizens Advice Stevenage can help. Our support is free, confidential, impartial and available to everyone.

We can help you:

• Understand your debts

• Check if you can get benefits or grants

• Speak to the people you owe money to

• Look at options like Breathing Space

The sooner you ask for help, the more choices you usually have.

January can feel tough, especially after the cost of Christmas, but you don’t have to face money worries on your own. By taking a few small steps — checking what you owe, planning your spending and asking for help early — you can protect yourself from falling into debt.

Citizens Advice Stevenage is here to support you every step of the way.

Call (freephone): 0800 144 8848

Email: https://www.castevenage.org.uk/email-advice-form