A survey from financial expert NerdWallet UK found that those aged between 25 and 34 overspent the most, busting their budgets by £500 on average, while regionally those in Chelmsford, Wolverhampton and Coventry were judged to be the most out of pocket.
Swansea savers
Overall, a third of us managed to stick to our budgets this Christmas.
Those in certain areas were even savvier, with Swansea, Portsmouth and Cardiff hosting the largest underspenders, who came in over £1,000 under budget on average.
Meanwhile, across the UK, over a quarter of us hadn’t made a Christmas budget at all.
Debt for just under half of Brits
The study revealed that 45% of people across the UK have ended up in new year’s debt from Christmas. A separate study from savings platform Raisin found that, on average, they’ll spend four months paying this off, while 7% won’t clear the cost for over a year.
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Kevin Mountford, savings expert and co-founder of Raisin UK, said it was vital to stick to a budget for next year to avoid Christmas debt.
“Christmas is a time to enjoy with your loved ones, but the financial aftermath can be daunting. What we’re seeing is a growing divide between savers and borrowers when it comes to festive spending. As inflation erodes purchasing power, it’s critical for families to adopt smarter financial habits to avoid falling into long-term debt,” he said.
Summer spending for 2025
The NerdWallet study showed that, while Britons are planning to splurge on Christmas next year, it is the second-biggest event they are planning to fund.
Summer holidays will take the lion’s share of the cash, at £577, with residents in Edinburgh, Cambridge, and Wolverhampton planning to spend the most.
Older people will splash out on travelling, with those aged 55-64 expected to spend the most on summer holidays in 2025, averaging £708, followed closely by retirees at £679.
Birthdays, gigs, and festivals are also big planned purchases for many in 2025.
Personal finance expert Amy Knight from NerdWallet UK said that preparing for these expenses now will help savers to avoid debt from big events this year.
“If you’re new to saving or lack confidence in your ability to save money, start small and ‘pay yourself first’. This means moving some money into your savings as soon as possible after you get paid,” she said.
