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Money support when you need it most

We’re partnering with StepChange, who provided 5 top tips to organise your finances and plan ahead for the new year.

22 December 2023Helen Tippell 2 min read
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The beginning of a new year can be exciting – it’s time to set new money goals and set yourself up for success. Our new research revealed that online searches for 'credit card comparison' and 'loan comparison’ increase by an average of 83% after the festive period, showing that many people are searching for financial help after the Christmas period.

With more than 1 in 3 (34%) households with children struggling to afford Christmas, there’s an understandable pressure when it comes to the festive season, and new research from free debt advice charity, StepChange, found that 1 in 12 (8%) people will be relying on credit to cover costs this Christmas - the equivalent of 4 million people in the UK.

The festive season can be a difficult time, but you’re not alone. We’re partnering with StepChange to provide 5 valuable tips on how to recover from overspending during the festive period, and different ways to make your money go further.

Seek financial help from trusted advisors

Remember, you're not navigating any financial challenges alone, and by taking proactive steps to evaluate and manage your finances, and seeking help from trusted advisors, you can aim for a more secure and stress-free future.

Charities like StepChange offer valuable assistance, providing expert debt advice free of charge.

StepChange's trained debt advisors can offer impartial guidance, helping you reevaluate and manage your finances effectively. Their expertise allows them to tailor solutions to your unique needs, offering a roadmap to achieve your financial goals.

Contact StepChange through their website, or speak to an expert debt  advisor at 0800 138 1111.

Try the virtual jam-jar budget

The jam-jar budget is a popular money-saving method where you only use what’s absolutely necessary. You start by organising your monthly earnings into different pots like travel, food, bills, and other necessities. Then, you take money from the pot when needed and put any leftover change back in when you’re done. At the end of the month, add up your leftover money and transfer it all into 1 savings account.

Use the 50/30/20 budget method

The 50/30/20 method means splitting your income into 3 segments – 50% for needs, 30% for wants, and 20% for savings. ‘Needs’ would be any necessities like your household bills and food shopping. ‘Wants’ would be something like a takeaway or new outfit. The rest goes into your savings.

Make small savings everyday

When it comes to building up savings, even the smallest amount can add up to something incredibly rewarding.

Try setting some money aside every week, even something as little as £1 to start, then gradually increase the amount to £2 a week, then £3 a week, and so on. At the end of the year, you could save £1,378.

Over the year, this can help you plan ahead for upcoming events, like  birthdays, anniversaries, or holidays, and help you to save money in advance.

Give yourself some breathing space

Dealing with debts can be overwhelming, but asking for financial help and utilising support schemes can provide you with some much needed breathing space.

The Debt Respite Scheme, a free government initiative, prevents creditors from taking enforcement action for 60 days. During this time, you can seek professional financial advice, or initiate your debt solutions stress-free.

For more details on this initiative, visit the Breathing Space Scheme advice page on StepChange’s website.

  1. Get free, confidential and expert advice or money guidance
  2. Receive the right help or service for your personal situation
  3. Feel supported while you deal with your money worries, for as long as you need

Try StepChange's Money health check. This service is free, confidential, and won't affect your credit score. Get help for free

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Written by Helen Tippell

Digital Copywriter

Helen's our resident Digital Copywriter. She makes personal finance easier to understand so you can be confident about your credit choices.