A perfect winter storm of high spending during December and payrolls being brought forward before the holidays begin will leave Brits with a New Year tightening of their belts, according to a survey of over 2,000 people by uSwitch.
It could take up to six months for millions of people to recover financially after a month in which spending is a third higher than average, with Brits stocking up on food and presents.
However, the survey shows UK consumers planning an austere start to the year by cutting back on non-essentials, like going out or luxury food. Seven per cent of consumers are even set to squeeze a bit of cash from selling presents and other possessions – or even stopping subscriptions to unused services.
And the squeeze could hit credit card repayments, after £11bn was put on plastic to fund Christmas spending. Nine per cent of those surveyed thought they might miss a payment.