A stark new study has revealed the severe financial pressure facing households across the United Kingdom this month, with a significant portion of the population set to exhaust their funds by mid-January.
The Mid-Month Money Cliff
Research commissioned for the financial platform Intuit Credit Karma indicates that the combined burden of winter bills and Christmas expenditure is creating a perfect storm. The survey, conducted by Opinium Research in December, polled 2,000 adults across the UK.
It found that more than a third of people, specifically 35 per cent, anticipate running short of cash before January ends. For the majority of those affected, the financial shortfall is arriving with alarming speed. The data shows that 51 per cent of individuals who expect a shortfall this month will have completely depleted their monthly income by Thursday, 15 January 2026.
Turning to Credit as a Lifeline
Faced with this cash squeeze, many are considering taking on new debt to bridge the gap. The study found that one in seven people, equating to 14 per cent of respondents, plan to acquire new credit products in January to manage their finances and pre-empt further debt problems.
This trend is reflected in user behaviour on Credit Karma's platform, which identified 8 January as the most popular day to apply for credit products throughout the entire year of 2025.
Expert Advice for a Financial Turning Point
Eleonore Hajek, Head of Product for UK and Canada at Intuit Credit Karma, commented on the findings. She noted that while the new year is a traditional time for financial review, for many it swiftly becomes a period of anxiety.
"The reality of festive spending and a longer time between pay cheques catches up with you around mid-January," Hajek stated. She offered guidance for those considering financial products like balance transfer cards, emphasising the importance of understanding the terms and having a clear repayment plan in place.
Her advice aimed to help ensure that "January becomes a turning point rather than a pressure point" for individuals struggling with post-holiday finances.
The research underscores the ongoing challenge of budgeting after the Christmas period, highlighting a critical point in the financial calendar where household budgets are stretched to their limit.
