A significant portion of the UK population is facing a severe financial squeeze this month, with new research indicating that the combination of Christmas spending and winter bills is pushing household budgets to the brink.
The Mid-January Financial Cliff Edge
According to a survey commissioned by the money platform Intuit Credit Karma, more than a third (35%) of adults across the UK anticipate running short of cash before January concludes. The data paints a particularly stark picture for those already expecting difficulties.
Among those who believe they will exhaust their funds this month, a majority of 51% predict they will have used up their entire monthly income by Thursday, January 15. This mid-January point is often critical, as identified by Credit Karma, because it is when the reality of festive overspend coincides with a longer gap between pay cheques for many.
Turning to Credit as a Solution
The survey, conducted by Opinium Research in December with 2,000 UK respondents, also found that a notable number of people are planning to seek new credit to bridge the gap. Specifically, one in seven (14%) people intend to take out new credit products in January to cover the shortfall and get ahead of expected debt.
Platform data from Credit Karma supports this trend, showing that January 8 was the most popular day to apply for credit products in the entirety 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 reflection, for many it swiftly becomes a source of concern.
"The new year is often when people take stock of their finances, but for many, that moment of reflection can quickly turn into concern," Hajek said. She emphasised the importance of understanding the terms of any financial product, particularly for those considering a balance transfer card.
"Have a clear repayment plan in place," she advised, "so January becomes a turning point rather than a pressure point." This guidance underscores the need for careful management to avoid deepening debt while navigating the post-holiday financial hangover.
