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Charitable organizations that offer debt advice have reported a significant surge in the number of individuals seeking help with financial difficulties following the Christmas period. This time of year is traditionally a peak for calls to helplines as people struggle with the financial strain caused by holiday spending. Notably, StepChange, an advice charity, revealed that Monday experienced higher call volumes than any day in the previous year. Meanwhile, Money Wellness, a credit counselling service, indicated that 20% of those utilizing their services around the New Year sought help during overnight hours.
Money Wellness, which provides free debt and financial guidance, highlighted that thousands accessed support even on Christmas Eve and Christmas Day. Their expanded online resources allow users to find important information outside standard office hours, including late at night. Sebrina McCullough, head of advice at Money Wellness, remarked, “The numbers we’re seeing over Christmas and New Year are unprecedented,” emphasizing that many people turn to their services in moments of heightened anxiety during the late hours, often due to the pressure of holiday expenses despite tight budgets.
The StepChange website recorded nearly 4,000 visitors on Christmas Day, and over 15,000 across New Year’s Eve and New Year’s Day combined. While some may have been gathering information, the influx of calls in early January surpassed last year’s figures, though it hasn’t yet reached levels seen during the peak of the energy crisis a few years ago. The Money Advice Trust, operating National Debtline, reported that the initial working days of January saw a record number of calls, with 1,365 received on what became the busiest day ever. Many callers were particularly worried about meeting essential expenses such as council tax and rent. With winter conditions adding further pressure, and £4.4 billion owed to energy companies following a period of high prices, concerns remain high despite government cold weather payments being triggered in many areas.
Those struggling with unmanageable debt are being strongly encouraged by charities to seek support promptly rather than allowing their situation to worsen. Dave Murphy, who has successfully navigated his own debt difficulties with assistance from StepChange, underscores this advice. After facing redundancy and a divorce within six months, his credit card debt escalated to between £20,000 and £25,000, leading to overwhelming stress. He explained, “You feel that you are letting creditors down because you want to do what they ask of you – but you are scared, you are renting, and at times you struggle to get through each day.” Now steadily repaying manageable debts and working in insurance, Dave aims to inspire others by sharing that recovery from severe financial trouble is possible. Adding to the concerns, recent Bank of England data show credit card borrowing grew at the fastest annual pace in nearly two years before Christmas, climbing to 12.1% in November, the highest level since January 2024
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