Christmas may be the season of sparkle, but the financial reality behind it is looking decidedly less shiny. New research from MoneySuperMarket shows that one in ten Brits now borrow – through credit cards, overdrafts or loans – just to get through December, while a further nine per cent rely on Buy Now, Pay Later to spread the cost.
Even then, the pressure doesn’t end when the decorations come down. Fifteen per cent of people run out of money before January payday, and one in ten say they’re depending on a festive bonus to avoid the red.
With the average household expecting to spend £1,626 on gifts, gatherings, travel and celebrations this year, it’s clear that the classic “season of goodwill” has become a season of worry for many.
But a joyful Christmas doesn’t have to be a costly one, and certainly not one that follows you into the new year. Here are 10 smart and sustainable ways to save your money and your sanity.
Best ethical credit cards in 2025
1. Face the numbers before they snowball
Knowing your true December costs is half the battle. The research shows how easily spending spirals – from gifts to nights out to food. Set a maximum budget based on what you can genuinely afford, not what tradition dictates, and stick to it religiously.
2. Cut the gift list – kindly
Twelve per cent of people overspend at Christmas just to keep up appearances. Suggest Secret Santa, agree to a spending cap or move to experiences instead of things. A walk, a homemade voucher or a shared day out leaves a better memory than a rushed present.
3. Dodge “financial FOMO”
MoneySuperMarket’s data shows one in ten Brits feel pressured to join in every festive event, even if they can’t afford it. Level with your friends as chances are they feel the same. Swap pricey cocktails for mulled wine at home or a Christmas movie night.
4. Plan your festive food
With Brits spending an average £78 on drinks and £76 on seasonal outings, food-based gatherings add up fast. Write your list, buy only what you need and plan meals with leftovers in mind. Turkey and potatoes become pies, bones become stock, veg becomes stir-fries.
5. Make greener swaps that genuinely save
Small tweaks protect both your wallet and the planet. Vegetarian dishes are often cheaper than meat-heavy feasts. Use brown or recycled wrapping paper instead of foil-coated wrap. And if you’re getting a tree, go for an FSC-certified real one you can recycle – or rent a potted tree and return it in January.
6. Resist the “Christmas outfit” trap
The average Brit expects to spend £64.85 on festive clothing. Before buying anything new, check what you already have or borrow from a friend. Festive jumpers are rarely seen more than once anyway and are often perfectly reusable.
7. Say no to events that stretch you
Only 20 per cent of Brits plan to attend their office Christmas party this year, and a chunk say it puts financial pressure on them. If a plan doesn’t work for your budget, decline politely. Protecting your finances beats one more raffle-ticket dinner.
8. Borrow only if you’ve compared your options
With more people turning to credit, doing it wisely is crucial. If borrowing is unavoidable, compare rates and terms before signing up to anything that feels “quick” or “easy”. Comparison sites like MoneySuperMarket can help you find cheaper, clearer credit options without falling into expensive overdrafts.
9. Talk money early – and set expectations
Whether it’s gift rules, work events or family traditions, being open about costs takes the pressure off everyone. A ten-minute conversation in November can save weeks of overspending – and guilt – in December.
10. Choose the kind of Christmas you actually want
With 15 per cent of people running out of money before January payday, it’s clear the pressure to “do it all” doesn’t serve anyone. Focus on the traditions you love, skip the ones that drain you and remember that the best parts of the season rarely come with a receipt.
