Over nine million people across the UK are expecting to end up in debt due to the high cost of Christmas this year, according to research from responsible lender, Creditspring.

The findings reveal that young people will be the worst hit – a quarter (25%) of those aged 18-34 say Christmas will put them into debt compared to 17% of the whole UK population.

Four in ten (39%) young people admit they are reliant on their savings to pay for Christmas, higher than the UK average of 32%.

As well as dipping into savings, people will need to borrow to get through the festive period. Three in ten (29%) 18-34-year-olds also say they will have to borrow money from friends and family to cover the cost of Christmas – this is over double the UK average of 14%.

The findings also reveal that many people are in a much worse financial position than in previous years. Four in ten (39%) young people admit they’re more worried about their financial situation than any other Christmas – higher than the UK average of 27%.

As a result, a quarter (27%) of 18-34 year olds say they won’t be able to buy presents due to the financial challenges they face – this is more the double the UK average of 13%.

A fifth (21%) of all adults across the UK admit they are not confident they’ll be able to afford festive activities, gifts or events this year due to their financial situation.

The research highlights that millions of people are set to enter a new year in debt, putting their finances in a perilous position and likely to lead to the accumulation of further debt, exacerbating an already challenging situation.

These vulnerable households are in urgent need of support and greater choice affordable, short-term credit options to enable them to manage their finances without the risk of debt spirals that prolong their financial struggles and further limit credit options.

Neil Kadagathur, CEO and Co-Founder of Creditspring, comments: “Christmas is a period we should all look forward to but millions of people approach it with dread due to the crippling impact it has on their finances.

“A new year often marks a time when we look to get our finances in order, but many people are going to enter January on the back foot and already under intense financial strain. These struggling households are facing a bleak start to the year and many are likely to compile huge amounts of debt that will hinder them for the rest of the year and beyond.

“People need improved access to safe, simple and affordable short-term credit options that will provide the lifeline they need to stay afloat post-Christmas and that don’t charge interest or extortionate fees that make a tough situation much worse than it needs to be.”

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 £930 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.