Increased Need for Debt Support During Festive Season
During the Christmas holiday, nearly 4,000 individuals turned to Money Wellness, a free money advisory service, seeking assistance with unmanageable debt. The website saw a notable surge in activity, with 3,994 visits recorded across Christmas Eve, Christmas Day, and Boxing Day.
Geographically, London led with 1,835 users searching for help, followed by 461 in the Midlands. In the North West, cities such as Manchester and Liverpool accounted for 310 visits. Other regions included Yorkshire with 202, East England with 183, the South West with 175, and the North East with 101. Additionally, Wales recorded 88 visits, while Scotland and Northern Ireland each saw 66 individuals seeking advice.
Rising Costs Put Pressure on Households
The increasing cost of living continues to weigh heavily on households, with expenses such as energy bills, food, council tax, water charges, and broadband fees predicted to rise further in 2025. This financial strain has led to more people seeking help earlier than usual.
Sebrina McCullough, Director of External Relations at Money Wellness, commented: We frequently observe an uptick in debt advice requests in January as the impact of Christmas spending begins to surface. However, this year, we noticed an uptick during the festive season itself, with around 700 people starting their debt advice journey online over just three days. This highlights the ongoing pressure on household finances.
She added, “As energy prices are set to increase in January and other essential bills follow suit in April, 2025 could be particularly challenging for millions. The cost-of-living crisis remains a pressing concern. If you’re struggling financially, seek free and impartial advice. There are solutions available for every situation—nobody should face this alone.”
Practical Steps for Financial Stability
Money Wellness offers the following advice to those grappling with financial difficulties:
- Review Your Budget
Start by creating a clear budget. Use free online tools to track your income and expenses. Identifying areas to cut back can prevent overspending. If your expenses exceed your income, act swiftly to address the deficit. - Reduce Household Bills
Save on essentials such as energy, broadband, and insurance by shopping around and switching providers. Social tariffs may be available for those on low incomes or benefits, potentially reducing bills by up to 50%. - Maximise Income
Unclaimed benefits amounting to £23 billion remain available. Many assume they don’t qualify while working, but around 71% of Universal Credit claimants are employed. Use benefit calculators to determine eligibility and increase your income. - Explore Grants
Support schemes, such as council-provided household assistance, offer cash or vouchers for essentials like food and energy. Charitable grants tailored to individual circumstances can also provide relief. - Seek Debt Advice
For those unable to meet essential payments or whose debt exceeds their income, professional debt support is crucial. Tackling financial issues early makes them easier to manage.
A Call to Action
The figures from Money Wellness underline the ongoing need for financial education and accessible support systems. The organisation encourages those feeling overwhelmed to act proactively, especially as financial pressures are set to increase in the coming months.
The New Year presents an opportunity for individuals to regain control of their finances and plan for a more stable future. Seeking guidance now can be the first step toward financial resilience.