Your January Statement Doesn't Have to Be a Horror Story

It’s the most wonderful time of the year, but for many in the UK, the January credit card statement is anything but wonderful.

A surprising number of people take out loans for Christmas, even when they've managed to save. This might sound like a bad financial move, but the real issue isn't always the borrowing itself.

The problem lies in *how* the money is borrowed and the repayment plan is set up. A high-cost payday loan or adding to a maxed-out credit card can create a debt spiral that lasts for months. The borrowing isn't the villain; poor money management and an unrealistic repayment strategy are.

Your first stop should be your local credit union. We are community-based organisations that offer fair, affordable loans. Their focus is on your financial wellbeing, not profit, often providing lower interest rates than many high-street lenders. Especially for people with low credit score, or no credit history and for those who do not care access to credit at all.

But the real secret to a stress-free Christmas lies in planning ahead. Start a dedicated savings plan for next year. We suggest a simple method: figure out a comfortable monthly amount to set aside. This isn't a huge sum you'll painfully miss from your monthly budget.

By saving a small, manageable amount each month, you build a Christmas fund. The beauty of this system is that when you need cash and your savings don't quite cover everything, you can borrow from your credit union without feeling the pinch. Why? Because the loan repayments are often deducted directly from the same monthly amount you were already comfortably saving.

You’ve already proven you can live without that money, so repaying the loan feels effortless. This breaks the cycle of January debt panic and puts you in control, letting you enjoy the festive season for all the right reasons.

Learn more about Christmas Savings and join us!

By the way, join our Christmas giveaway, it's fun games and impossible riddles. Only members are in the draw, join us for free, if you're not already with us and start saving from £10 a month.

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