Millions of Brits risking ‘debt time bomb’ with Christmas shopping strategy

A staggering amount of people are risking financial woes down the line by using buy now, pay later schemes to pay for Christmas this year as they make money worries a 2026 problem

One in seven Brits has admitted they are putting Christmas on credit.

Some 14% are turning to buy now, pay later schemes to help fund festivities this year, research found.

A quarter of people quizzed confessed they will be using credit cards for their Crimbo splurges.

And money Xmas hangovers are set to drag into next year with only 22% of shoppers expecting to have cleared their festive bills by the end of December.

Vix Leyton, consumer expert at banking app thinkmoney, which carried out the survey, said some people could risk “turning festive fun into a debt time bomb that will echo well into 2026”.

She added: “Before putting Christmas on credit, it’s worth weighing up exactly what’s important to you and what’s just noise.

“For the essentials, planning early is key to create the biggest run up and bag the best bargains, and remember that Christmas is about celebrating with the people you love, not how much you spend.”

Vix has suggested making gift lists and budgets, agreeing a gifting “price cap” with friends and family and avoiding panic-buying by starting early.

Cash-strapped shoppers have also been urged to plan for big sales events such as Black Friday to save money and have online wish lists and price alerts.

The poll also found 7% of shoppers expect to borrow from family and friends to help fund their Yuletide.

More than half of adults quizzed admitted they will use their regular income while 42% will dip into savings.

And nearly half said they find buy now, pay later (BNPL) attractive as a way to spread the cost, rising to 73% among 25 to 34-year-olds.

It comes after the UK Finance industry body said last week that BNPL services, which allow shoppers to split payments without paying interest, are booming.

One in four adults are now using them, up from 14%.

But concerns have been raised about some BNPL borrowers overstretching themselves and being hit with charges for loans they cannot afford to pay back on time.

In July, the Financial Conduct Authority watchdog launched a probe into BNPL, proposing rules to give consumers more transparency over what this type of borrowing involves.