Christmas is meant to be a time of connection, celebration and rest — but for many households across the UK, it also brings financial strain that can last well into the new year. With everyday costs still high and household bills continuing to put pressure on budgets, more families are turning to borrowing to get through the festive period.
But borrowing for Christmas can take far longer to repay than many people realise.
What the Latest Research Shows
Recent data from national money and debt charities reveals a worrying trend:
Household bills arrears are rising
Analysis from StepChange Debt Charity has found that the average person seeking debt advice is now £3,911 behind on essential household bills, such as energy, council tax and rent.
Everyday debt is becoming harder to manage
According to The Money Charity (June 2025 Money Statistics), the biggest areas of personal debt pressure this year are:
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Fuel debt
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Council tax arrears
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Credit and store-card borrowing
Council tax arrears are at record levels
Debt Justice reports that council-tax arrears in Britain have reached £8.3 billion, a record high and a sign of the growing struggle to cover everyday living costs.
All of this means one thing:
Borrowing for Christmas could hit households much harder in 2025 — and for many, the repayments last long after the decorations come down.
A Better Way: Start Planning for Christmas Now
Wave Community Bank is encouraging members to plan ahead to avoid unnecessary debt this winter.
Even small steps taken early can make Christmas more manageable — and less stressful.
Save for Christmas with a Christmas Savings Account
If you’re looking for a simple, stress-free way to prepare for Christmas, the Christmas Savings Account offers a dedicated place to put money aside throughout the year.
Why choose the Christmas Savings Account?
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Save as much or as little as you like
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Decide your own savings amount and schedule
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Make unlimited withdrawals between 1 November and 24 December
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Automatically locked from 25 December to 1 November — helping you keep next year’s savings safe
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Open to all Wave Community Bank members aged 18+
Learn more or open an account:
🔗 https://wavecb.org.uk/christmas-savings/
Prefer a Flexible Approach? Try a Savings Goal in the Wave App
You can also set up a standard Wave Save Account goal to build your Christmas fund:
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Choose how much you want to save
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The Wave app calculates how much you need to set aside each month
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Track your progress easily on your phone
Example:
To save £2,000 before December, the app will suggest saving £187 per month.
Learn more or open an account:
🔗 https://wavecb.org.uk/christmas-savings/
Make Saving Easier with Payroll Savings
If your employer is part of our payroll partnership, you can save automatically straight from your salary:
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Build your Christmas fund effortlessly
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Keep savings separate from day-to-day spending
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Access reduced-rate loans repaid through payroll
Learn more about saving or borrowing through payroll:
🔗 www.savewithchorus.org.uk
Wave Community Bank Is Here to Support You
We know how challenging this time of year can be — emotionally and financially. But planning early, even in small steps, can help you stay in control and avoid the stress of starting the new year in debt.
Whether you want to spread the cost, start saving for next Christmas, or build healthier financial habits, Wave Community Bank is here to help.
