Dealing with Christmas debt

Last updated: 16/01/2025

Christmas is an exciting time of year, but it comes with a cost. Many single parents find that debts begin to pile up after the holiday season.

What to do if you are in debt after Christmas

Debts can easily pile up over Christmas, when you might feel as though your only choice is to borrow money. Many single parents feel this way and our advice team receive a high number of queries about debt in the period after Christmas. You’re not alone.

We have some helpful guides available for you to try and take control of your finances. These can be used whenever you feel that your debts are beginning to pile up.

We also have a blog all about credit card and Klarna debt as this process is slightly different to other types of debt.

 

Step by step guide to dealing with Christmas debt

Dealing with debt after Christmas will be a similar process to dealing with debt during the rest of the year. Here is a brief step by step guide on how to deal with your debt after Christmas.

 

Step 1: Recognise the issue

You’re on this page, which means you’ve figured out that you’re in some debt. The first step is to realise that there is an issue and the second step is to take action to try and sort out the issue. It’s great that you’ve recognised the problem and that you are now seeking support to find a solution.

 

Step 2: Don’t ignore bills and letters

The most important thing to do if you’re in debt is to not ignore your bills or letters. It’s understandable to just want the debt to “go away”, but ignoring letters and bills may even result in more debt piling up.

Take a deep breath, and open any letters you’ve been putting to one side. Have a read through them more than once so you know exactly what it is that they’re asking of you. Feel free to take notes on a separate piece of paper or in your phone if that helps you visualise things.

 

Step 3: Make a plan

The next step is to try and work out what you need to pay off and when. This is where it will be useful to try our budgeting and debt planner tool.

You might also want to have a look at our page on how to budget.

So grab your bank statements, letters and any other information you might need and let’s try to break up your finances into smaller parts so that you can start to work through what you need to repay.

  • Make a comprehensive list of all your debts. Include the name of the creditor, the outstanding balance, the interest rate, and the minimum monthly payments you feel you’d be able to make
  • Focus on paying “priority debts” first, like rent, mortgage arrears, council tax, and energy bills
  • For other debts like credit cards or loans, gather all the details, make a budget, and reach out to your creditors to set up a repayment plan that works for you. It might feel overwhelming, but it’s a key first step
  • We have a page which explains more about priority and non priority debts

Once you know how much you owe each of your creditors, you will need to decide how much you can afford to offer them. Look at your completed Budget and Debt List which will show you what you can and can’t afford.

 

Step 4: Reach out to your creditors

It’s really important that you reach out to the company or companies that you owe money to, especially if they are trying to get in touch or asking you to pay them. If you speak to them, they might let you pay your debts off in smaller amounts once you tell them about your payment plan.

We have a useful page on how to deal with your creditors which includes a template for writing to them. Have a look at this page to see what exactly you need to do and say to the people you owe money to depending on your circumstances.

We also have a blog all about credit card and Klarna debt as this process is slightly different to other types of debt.

Remember that when you get in touch with your creditors, you’ll need to write to each one of them with your repayment offer and include a copy of your payment plan and budget. This will show them that you’re only spending money on essential living costs and that the offer you’re making is fair.

Make sure you explain how much you can afford to pay each week or month.

 

Step 5: Don’t be afraid to ask for help

It is not advisable that you try to deal with your debts yourself.

If your budget still isn’t adding up or you’re struggling with essentials like bills and food, you could get in touch with us or any free Scottish debt advice service and an advisor will be able to talk you through your options. You don’t have to cope with all of this alone and many organisations have free debt advice services available to help you understand your finances and regain control of your debts.

We have included the names and contact details below of some of the free Scottish debt advice services you could get in touch with.

 

Free Scottish debt advice services

Money Talk Team – Citizens Advice Scotland (CAS)

Freephone: 0800 028 1456

Check opening times with your local Citizens Advice office. Find your local Citizens Advice office.

Find out more from the Money Talk Team website.

 

National Debtline

Open Monday to Friday 9am to 8pm. Saturday 9.30am to 1pm.

Freephone: 0808 808 4000

Online chat

Find out more from the National Debtline website.

 

Advice Direct Scotland

Freephone: 0808 196 2316

Online chat

Open Monday to Friday 9am to 5pm.

Find out more from the Advice Direct Scotland website.

 

OPFS can help you through this difficult time

Our advisers can provide you with support, advice and information to help you navigate your finances. They can also check that you are receiving all the benefits you are entitled to and can advise you as to how you can apply for other benefits.

Learn more about our Welfare Rights team

Call our Lone Parent Helpline on 0808 801 0323

We care, and we are here to help you. Our Helpline is available to contact from Monday to Friday 9.30 am to 4pm. We are here to discuss anything that is worrying you.

We also operate a live chat during the same hours, which you can use if you would prefer.

We will always listen without stigma, shame, or discrimination.