PRIORITISE YOUR DEBT TO ENJOY A BETTER SUMMER

RESEARCH estimates more than a quarter of people who went over budget at Christmas will take more than six months to pay the money back.

Will you still be paying off last year’s Christmas spending when you’re taking your summer holidays?

A new survey has found that – on average – people who went over budget during the 2023 festive season expect to take five months to pay the money back.

More than a quarter (28%) of those who blew their budget on the festivities estimate it will actually take more than six months to pay off their debts.

Across the survey, 27% of people went over budget at Christmas, overspending by £244 on average, according to the Censuswide research, carried out for free online budgeting tool, IE Hub.

Dylan Jones, CEO of IE Hub, describes the findings as “really concerning”, adding: “What also concerns us at IE Hub was that 8% of those we surveyed never set a budget in the first place.”

Of those who are now working their way out of debt, a third (33%) plan to work more hours to clear what they owe, while nearly a quarter (23%) plan to sell some belongings.

Nearly a fifth (18%) will ask friends and family for help, and 17% will use online budgeting tools.

Meanwhile, one in six (16%) will use credit cards to manage their debt.

When looking for a new credit card, it could be worth checking your credit score with the main providers. This may help get an insight into how you might be able to improve your score. It’s worth shopping around, comparing deals and looking for 0% balance-transfer offers. The Government-backed Money Helper service has a range of tools on its website that can help people to get their finances on track, and some people may also find it handy to use tools in their banking app to see where their money is going, and to help them budget.

It may be worth considering how you may be able to prioritise your debts before browsing summer holiday deals. Setting a budget for any planned summer holidays could be a good way to start – particularly if you were one of the 8% who didn’t set a budget for Christmas. More than 2,000 people across the UK were surveyed for IE Hub’s research in January 2024.

‘‘ In a survey, 28% will still be paying for Xmas budget busting six months later