Debt charities report an increase in calls in January as concerns rise

Loan charities say they are receiving a large number of calls as people worry that their financial situation has become unbearable.

The first week of January is usually the busiest time of year for the helpline, following a particularly expensive period.

Advice charity StepChange said Monday was busier than any single day last year, and credit counselling service Money Wellness said a fifth of those accessing its year-end services did so between 22:00 and 03:00.

working to get rid of debt.

Dave Murphy is working to get rid of debt and said the demands from creditors could be overwhelming, but he urged anyone struggling to make sure they seek help – for their financial and mental well-being.

Money Wellness, which runs free debt and money advice services, said thousands of people had accessed its services on Christmas Eve and Christmas Day. Online extended support allows people to access information outside of normal hours, including overnight.

Its head of advice, Sabrina McCullough, said, “The numbers we are seeing over Christmas and New Year are unprecedented.

“People often feel pressure to celebrate the holidays even when money is tight, and our data shows that many people come to us late at night when they feel most anxious.”

StepChange’s website received 3,958 visitors on Christmas Day and a combined 15,401 visitors on New Year’s Eve and January 1.

Many people might have been exploring their options, but at the beginning of the month calls started coming in large numbers and at a rapid pace. Although not at the levels of the energy crisis a few years ago, there was a significant increase in call numbers last year.

The Money Advice Trust, which runs the national dateline, said the first working days in January saw more calls than last year.

Monday was its busiest day in its history, with 1,365 calls.

Concerns are particularly acute for people struggling to pay priority bills such as council tax and rent.

The cold weather could also put extra pressure on vulnerable households, with energy suppliers already owed £4.4bn after a period of high prices, although the government cold weather pay has been triggered in many areas.

The charity is urging anyone whose debt has become unmanageable to seek help as soon as possible rather than making matters worse by ignoring the situation.

This is a perspective shared by Dave, who has managed to climb out of difficulty.

A few years ago, he found that his previously manageable credit card debt had become a problem when he was unexpectedly made redundant while going through a divorce.

“Those were two quite dramatic things in six months,” said Dave, who has previously spoken to the BBC about his debt issues.

“The debt was around £20,000 to £25,000 at its peak. It became so overwhelming. You feel like you’re frustrating creditors because you want to do what they want you to – but you’re scared, you’re living on rent, and sometimes you struggle to make ends meet each day.

“Once you get stuck in a cycle, it’s really difficult to get out of it.”

He is now working in the insurance sector; his debts are manageable and being repaid, and he says he wants to help others “to show that you can deal with these things.”

Data published by the Bank of England earlier this week fuelled concerns that it is becoming harder for some households to manage everyday costs without borrowing.

The data showed that credit card borrowing before Christmas grew at the fastest annual rate in almost two years.

The annual growth rate for credit card lending rose to 12.1% in November from 10.9% the previous month – the highest figure since January 2024, when it was 12.5%.