Millions of Brits are only just finishing paying off the cost of Christmas, a new study has found. Research from debt management firm Lowell reveals that on average, it takes families 3.8 months to clear their festive debt, officially mid-April.
The survey found that 74% of UK families relied on credit cards and Buy-Now-Pay-Later schemes to help cover the cost of Christmas. While some families have the luxury of being able to save up for the Christmas period, others have to turn to credit which they pay off over a longer period of time.
This means those who put their 2025 Christmas shopping on credit may just only be clearing their debt, experiencing almost four months of interest payments just to pay off the festive period. However, 15% of households are still repaying these debts and expect it to take six months or longer to fully recover. This is an estimated 4.29 million UK households who are continuing to work their way through Christmas repayments well into the summer.
Expert Insights on Festive Debt
John Pears, UK CEO at Lowell, shares his insights on households opting for credit to pay for Christmas: "Our experience shows that festive spending can cast a much longer shadow than expected, particularly when credit cards or Buy Now, Pay Later options are used to bridge the gap."
"While these tools can offer short-term affordability, they often mean people are still dealing with repayments, and in many cases, accumulating interest, months after the big day."
"What's clear is just how normal it's become for households to spread the cost of Christmas over several months. We regularly see people still making repayments well into spring, and in some cases beyond, as they gradually work their way back to a more stable financial position."
"This extended repayment period can make it harder to stay on top of everyday expenses or build any form of financial resilience, leaving little room for unexpected costs. Over time, this can contribute to a cycle where one-off events lead to ongoing debt."
"It's a reminder that while Christmas is a single day, the financial effects can last far longer. If repayments are becoming difficult to manage, seeking support early can make a real difference and help prevent debt from escalating further."
