Two in five Brits dread the festive period due to financial pressure

• 43%* of Brits say they dread festive holidays such as Christmas due to the extra pressure on them financially
• 31%* also expect to be in debt in January due to gift giving in December
• 45% have had to dip into savings in past 12 months for everyday expenses

The festive period is meant to be one of cheer and happiness, but for two in five Brits it is one full of dread due to the extra financial pressure on them. During this time of the year, there is much expectation placed on people to buy gifts for family, friends and partners amongst other extra expenses.

The feeling of dread is one that is particularly felt by the younger demographic, with over half (53%) of 18-34-year-olds surveyed saying they dread the extra financial burden.

This sense of dread is felt across the UK, with those in the East of England (51%), Scotland (49%) and Northern Ireland (45%) being the most worried.

Most worried areas of the UK:

1. East of England (51%)

2. Scotland (49%)

3. Northern Ireland (45%)

4. London (45%)

5. North West England (44%)

In a year that has seen Brits dealing with increased housing costs such as rising rents and mortgages, inflation pushing up prices at the shops and many other increased costs, it has been a tough 12 months for finances.

Around two-fifths (41%) say they regularly finish the month with no money left in the accounts or are in their overdraft.

The research from Moneyhub also showed the toll this has had on Brits’ financial goals, with 45% of those asked having to dip into their savings over the past 12 months to pay for everyday expenses.

When it comes to building the used savings back up, it will likely be a long road, as 28%** of Brits struggle to save, describing their ability to save as ‘Limited’, ‘Decreased’ or ‘Poor’. While only 15% say they can save a significant proportion of their income a month.

There are also worries the pressure of the festive period could lead to more debt. Almost a third of Brits say they expect to be in debt in January due to gift giving in December.

Kim Jenkins, Managing Director of Moneyhub API said:

“A third of Brits expect to be in debt in January – a shocking and worrying statistic. Banks and financial institutions can focus on technology to provide smart, actionable insights to their customers in order to help minimise debt, support their saving and build financial resilience. This is important not just for January, but throughout the year. Using open banking and smart nudges, banks can alert customers to personal opportunities for saving, equipping them with the tools and behaviours to help cover the costs of the festive period throughout the year.”

* Combining respondents who ‘strongly’ or ‘somewhat’ agree with the statement.

** Combining respondents who admitted to any of the following when describing their ability to save: ‘Limited- I save a very minimal amount (less than 10%) of my monthly income’, ‘Decreased- my ability to save over the last year has decreased due to the cost-of-living crisis’, ‘Poor – I am unable to save at all each month’.