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One in five of Brits overspent at Christmas

One in five of Brits overspent at Christmas
Rosie Murray-West
Written By:
Posted:
14/01/2025
Updated:
15/01/2025

Overspending over the festive season hit 20% of us this year, with the average person ending up £390 over budget, a survey reveals.

Respondents aged between 25 and 34 overspent the most, according to NerdWallet UK, busting their budgets by £500 on average. Residents in Chelmsford, Wolverhampton and Coventry were judged to be the most out of pocket.

Swansea savers

Overall, a third of Brits managed to stick to budgets this Christmas.

Those in certain areas were even savvier, with Swansea, Portsmouth and Cardiff hosting the largest underspenders, who came in over £1,000 under budget on average.

Meanwhile, over a quarter hadn’t made a Christmas budget at all.

Debt for just under half of Brits

Only just over half (55%) of people across the UK avoided getting into new year’s debt from Christmas. A separate study from savings platform Raisin found that, on average, it takes four months to pay this off, while 7% won’t clear the cost for over a year.

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Kevin Mountford, savings expert and co-founder of Raisin UK, said it was vital to stick to a budget for next year to avoid Christmas debt.

“Christmas is a time to enjoy with your loved ones, but the financial aftermath can be daunting. What we’re seeing is a growing divide between savers and borrowers when it comes to festive spending. As inflation erodes purchasing power, it’s critical for families to adopt smarter financial habits to avoid falling into long-term debt,” he said.

Summer spending for 2025

While Britons are planning to splurge on Christmas next year, it is the second-biggest event they are planning to fund, the NerdWallet study showed.

Summer holidays will take the lion’s share of the cash, at £577, with residents in Edinburgh, Cambridge, and Wolverhampton planning to spend the most.

Older people will splash out on travelling, with those aged 55-64 expected to spend the most on summer holidays in 2025, averaging £708, followed closely by retirees at £679.

Birthdays, gigs, and festivals are also big planned purchases for many in 2025.

Amy Knight, a personal finance expert from NerdWallet UK, said preparing for these expenses now will help savers to avoid debt from big events this year.

“If you’re new to saving or lack confidence in your ability to save money, start small and ‘pay yourself first’. This means moving some money into your savings as soon as possible after you get paid,” she said.