The holiday season brings celebration and gift-giving, but it also ushers in something less festive: financial stress. In the UK, retailers now shape much of the spending calendar, with Black Friday one of the busiest shopping events of the year.

This year on Black Friday weekend, Nationwide building society alone saw more than 31.2 million transactions, a 5.8% increase on last year. What’s more, households that usually spend around £2,460 a month (a typical amount in the UK) shell out an additional £713 (29% more) in the month of December.

This spending culture can lead to people worrying about their budget for December and January, and often pushes them towards borrowing just to take care of their household and family.

Some estimates suggest that three quarters of UK families rely on credit, including credit cards, overdrafts and buy now, pay later (BNPL) services, to manage Christmas costs. These purchases may feel harmless at the time, but they quickly add up.

The UK already has high levels of consumer borrowing. A report by the Financial Conduct Authority (FCA) found that 65% of UK adults (35.3 million people) held a credit card.

BNPL has grown especially quickly, probably........

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