Midlands building society highlights growing January money pressures for local households
A regional building society has shared insight into how local households are coping with post Christmas financial pressures.
The YouGov survey of more than 1,900 UK adults who celebrate Christmas shows that overspending is common, despite widespread attempts to budget. More than half of respondents say they usually exceed their original budget over the festive period (54%), highlighting the difficulty many people face in accurately predicting costs.
Although many say they take steps to manage their finances, the research points to uneven budgeting habits. Nearly two thirds of people say they set a limit on how much they spend on presents (62%), but far fewer apply the same discipline elsewhere, with only around a third limiting spending on food (36%) or social occasions (32%). As a result, costs can quickly add up beyond initial expectations.
To make ends meet, a significant number of households rely on savings or credit. Around 28% say they dip into general savings to fund extra costs of Christmas, while more than one in four turn to credit cards (26%). A further 12% use Buy Now, Pay Later services, suggesting short-term solutions are often used to manage immediate pressure.
The impact of this spending is felt most strongly once the Christmas period ends. Four in ten people expect their finances to feel stressful in January (41%), as households begin the year dealing with higher bills, reduced income or the cumulative cost of seasonal spending. For some, this pressure leads to practical coping measures, including working extra hours or taking on additional jobs (12%), selling items online (15%), or postponing bills or subscriptions (4%).
Despite this, the research also points to a shift in mindset. More than four in ten people say they are now likely to save ahead for next Christmas (44%), suggesting growing awareness that spreading costs more evenly over time could reduce reliance on credit and ease financial stress.
Sophie Dwyer, Product Manager at West Brom Building Society, said: “January finances can be challenging for many, particularly when seasonal spending turns out to be higher than expected. Even when people try to budget, the total cost can still come as a shock once winter is over.
“Starting to save earlier, even in small amounts, can make a real difference. It allows people to spread the cost more evenly and feel more prepared when winter arrives. Making small, regular contributions can quickly add up, helping customers feel more confident and in control of their finances."
