6.5m People Forced to Take Out New Credit Cards to Afford Everyday Essentials in January

6.5 million people in the UK planned to take out a credit card this January to help them afford everyday essentials such as bills and food, reveals research from responsible lender, Creditspring*.

Over one in ten (12%) admitted that they will need to take out a credit card in January to afford necessities like heating and food. Young people are struggling the most – a quarter (25%) of people aged 18 to 34 said they would be reliant on credit cards this January.

14% of all UK adults said they’d be forced to borrow money to get through the month – again, young people are hit hardest with a quarter (25%) of 18-34 year olds planning to borrow to make ends meet this January.

With the cost of living remaining high, millions of people are struggling with their finances. A fifth (21%) of UK adults say their financial position has never been worse than it currently is – rising to 28% of younger workers aged 18-34.

With millions of people going into the new year strapped for cash and many reliant on borrowing to survive, people need to ensure that they have access to affordable options and don’t rely on expensive loans or credit products.

Neil Kadagathur, CEO and Co-Founder of Creditspring, comments: “The cost of Christmas and a longer than usual gap between paydays is putting millions at risk of starting the year with potentially crippling credit card debt.

“Many people are likely to need to borrow to afford everyday essentials like food, bills and rent this January but credit cards come with the risk of long-term debt which can get 2025 off to the worst possible start.

“Interest rates on credit cards are often high with debt rapidly piling up. Those borrowers who are unable to pay off the monthly balance in full risk falling into a debt spiral that makes a challenging financial situation even worse. People need access to affordable and responsible credit options that allows them to safely repay loans without the risk of running further into debt.”

Creditspring’s Benefits Finder helps ensure users have access to all the available financial support they may be entitled to but have yet to claim by identifying benefits they maybe be eligible for. On average, the tool has found that individuals could be entitled to £963 per month in additional financial support. 

Creditspring’s innovative model offers an FCA-regulated credit subscription service that responsibly offers short-term, affordable credit to borrowers. Members pay a fixed membership fee every month to allow them to access two no-interest loans per year with clear repayment terms, capped total costs and no hidden charges, late fees, confusing interest rates or risk of debt spirals.

* Based on latest ONS population figures.