Brits Facing a Financial Hangover After Festive Spending

28% of UK adults are more concerned about their finances in January compared to typical months.


An increase in spending over Christmas has resulted in many Brits facing a financial hangover this new year, research has found.

A new study of 1,000 UK adults, from digital financial coaching app Claro Money, has revealed that 28% of the nation are more concerned about their finances in January 2022 compared to a typical month. Contributing to this concern could be the fact that some Brits face more than a five week wait for their next payday, after being paid early in December.

This news comes as the Bank of England reported that consumer borrowing on credit cards jumped to its highest level in more than a year in November, pushing all forms of household unsecured credit to £1.2bn (Bank of England).


Claro Money previously revealed that Christmas expenses were expected to cost the average Brit more than a full working week to afford and the impact of this has been found to be most prevalent amongst Brits aged 25-34.

Nearly half (45%) of UK adults aged 25-34 say their outgoings and spending throughout December has directly resulted in them feeling more concerned about their finances this January than compared to previous months.

Furthermore, the financial strain caused by an increase in spending over Christmas could be putting the nation’s mental health at risk. The Mental Health Report assessed 14 aspects of a person’s wellbeing to calculate their Mental Wellbeing Scores and found that those who have experienced a negative financial change have scores 16% lower than the national average.



For those who are concerned about their finances this January or simply want to get back on track with their money habits, Rachel Harte, Head of Financial Planning at Claro Money, has shared some top personal finance tips for the new year:

Don’t Dwell on the Past

If you’re experiencing stress or concern about your finances, whether a direct result of Christmas spending or not, then it’s important to focus on changing these feelings now and in the future. Often, we can regret and dwell on the financial decisions we previously made and, whilst it’s useful to reflect and take learnings from this, try not to beat yourself up about these decisions. Instead, look ahead and focus on how you can alleviate such stresses and feel more positive about your finances – whether that’s establishing a realistic budget, building your savings, or making fewer impulse purchases.

Realign your Goals

Setting financial goals and considering how you would need to spend and save to achieve these is a great way to establish good money habits and gain a sense of reward from your finances.

For some people, spending over the Christmas period may have hindered their progress towards a financial goal. If this is the case for you, then focus on how you can get back on track and how you will need to adjust your financial habits to do so. If you had to take money out of your savings accounts or a specific money pot to afford Christmas expenses, then think how much more you need to put into this each month to not only match your previous amount but increase it too.

Switch up your Habits

In the new year we often try to establish new fitness, eating, or sleeping habits, and the same should be done for our finances too. With generally fewer social events and additional expenses than the Christmas period, January is a great time to switch up how you spend your money and develop more positive habits to help you achieve your goals.

For example, transfer money straight into your savings account, or specific money pot, the moment you are paid, as opposed to at the end of the month. If you often struggle to stick to a budget or spend more than you want to, then think about what small changes you could make to reduce your spending – this could be purchasing non-branded items of food, limiting yourself to one online clothes shop per month, or cancelling any subscriptions you aren’t using enough to justify the cost of.

Stay on Track of Spending

If you are working to a tighter budget this January, whether a result of Christmas spending or a five week wait for pay day, then make sure to pay close attention to your spending throughout the month. Thanks to apps such as Claro Money, as well as most online banking apps, it is easy to track the purchases you have made on your cards. So, at the end of every week, review your outgoings and update your budget remaining in line with this.

Creating a spreadsheet which maps out your incomings, essential outgoings (e.g. rent, utility bills, car insurance), weekly budget, and weekly spending is a great way to stay organised. Furthermore, regularly updating this spreadsheet will allow you a clearer understanding of how you are spending and is a useful financial habit to keep, even if you aren’t working to a tight budget.

Consider the Wellbeing Impact of your Finances

When considering what financial goals and habits you want to establish for 2022, it’s important to take into account your wellbeing and how this has been affected by your finances over the past year.

Consider what you find most fulfilling to spend money on, whether that’s a gym membership or going to dinner with friends. If you have been regularly struggling to afford certain things or progress towards a financial goal, reflect on the impact this has had on your wellbeing. By measuring how you spend or save money by the impact this will have on your overall mood and wellbeing, you will be in a better position to make considered financial decisions and develop a smart money mindset.


Claro Money is the UK’s first digital financial coaching app, offering affordable and accessible qualified financial guidance to everyone in the UK. Users can speak to a financial coach, build a financial plan, and choose from a range of saving and investment products.