According to a new survey from Nationwide, 84% of people expect this January to be the toughest yet financially due to Christmas spending added to debt from the cost of living crisis.
More than half (52%) believe January is the time of year that causes the most financial stress. While 51% blamed Christmas spending for January being a tough month, 43% highlighted energy costs as a factor. Added debt due to the increased cost of living was a significant issue for 37%.
With the excitement of Christmas over, the start of a new year is often seen as a testing time for people’s personal finances. The research shows over half of people (52%) say January is the time of the year that causes the most financial stress, with more than eight in 10 (84%) confirming they expect this January to be the hardest yet financially.
And as the January blues build, the reasons behind this added pressure and stress is down to a combination of factors. Over half of Brits (51%) blame heightened Christmas spending, while over four in ten point (43%) towards increased energy costs in the winter, while the added debt due to the cost of living is a significant factor for over a third (37%).
This additional pressure means 46 per cent of people are more likely to seek support due to financial pressures this year than in previous years. This rises to 63 per cent for those living in Greater London.
When it comes to seeking help, more than half (51%) of people have a tipping point where they would rather receive advice in person than online, rising to nearly two-thirds (65%) of 18–24-year-olds. More than a quarter (26%) say they feel more reassured when receiving support and advice on managing finances in person.
The top reasons for speaking to someone in person are:
- Feeling overwhelmed or confused by online help: 31%
- Feeling stressed about managing money or debt: 28%
- Worried about fraud/scams: 24%
- Upset following a bereavement or health problems: 21%
- 16% have seen their mortgage payments go up, increasing to 31 per cent of those in Greater London.
- Some 19 per cent of people expect to visit their local branch more to help manage their finances, increasing to 34 per cent of those living in Greater London.
Struggling With Unaffordable Debt?
If you would like to talk to someone about debt, we offer a free and confidential consultation to anyone in financial difficulty. We can advise you on a range of debt solutions suited to your individual circumstances, helping to protect you and your family with a sustainable way to manage your debt. Call 0800 121 48 63.
