Christmas 2019, I went completely overboard.

Presents for everyone. Nice food. Decorations. Drinks. More presents. The lot.

On 27th December, I checked my bank balance: -£340 overdraft.

I checked my credit card: £1,150 balance (it was £450 before Christmas).

I’d overspent by about £890.

I panicked. How was I going to pay this back? I was already stretched thin.

But I made a plan, stuck to it, and cleared the Christmas debt by the end of February (8 weeks).

If you’ve overspent at Christmas and you’re staring at January with dread, this guide shows you exactly how to recover.

How Much Have You Actually Overspent?

First, you need to know the damage.

Write down:

Credit cards:

• Balance before Christmas: £____
• Balance now: £____
• Christmas overspend: £____

Overdraft:

• Balance before Christmas: £____
• Balance now: £____
• Christmas overspend: £____

Buy Now Pay Later (Klarna, Clearpay, etc.):

• Owed before Christmas: £____
• Owed now: £____
• Christmas overspend: £____

Store cards/catalogues:

• Balance before Christmas: £____
• Balance now: £____
• Christmas overspend: £____

TOTAL CHRISTMAS OVERSPEND: £____

Mine was £890:

• Credit card: +£700
• Overdraft: +£190

Now you know what you’re dealing with.

Step 1: Stop the Bleeding (Don’t Spend Anything Else)

You’re already in the hole. Don’t dig deeper.

From today until you’ve cleared Christmas debt:

❌ No more Christmas sales purchases ❌ No January sales ❌ No new credit card spending ❌ No Buy Now Pay Later ❌ No overdraft spending

Your goal: Don’t add to the debt.

Practical Steps:

1. Freeze your credit cards Literally put them in a tub of water and freeze them.

Or cut them up (you can still pay them off, you just can’t use them).

2. Delete all shopping apps Amazon, ASOS, eBay, everything. Delete them.

3. Remove saved payment details Delete card details from all websites.

If you want to buy something, you’ll have to manually enter card details. That friction stops impulse purchases.

4. Unsubscribe from sales emails January sales emails are designed to make you spend. Unsubscribe from everything.

Step 2: Return Anything You Can

Be ruthless.

What you can return:

Gifts you bought yourself: If you bought yourself clothes, gadgets, etc. and haven’t used them, return them.

Gifts others bought you: If someone gave you something you don’t want/need, return it (if you have receipt) or sell it.

I know it feels mean. But being in debt is worse.

Unopened items: Anything still in packaging, return it.

Recent purchases: Most shops give 14-30 days to return. Check receipts.

My Returns (Dec 2019):

• Jumper I bought myself: £35 refund
• Kitchen gadget (never opened): £28 refund
• Book (decided not to read it): £12 refund
• Makeup set someone gave me (wrong shade): £22 refund

Total returned: £97

Every bit helps.

Step 3: Sell Unwanted Christmas Presents

Gifts you can’t return but don’t want:

• List on Facebook Marketplace
• List on Vinted (for clothes)
• List on eBay
• Sell to CeX (for electronics/games)

Be quick – January is when everyone’s selling unwanted presents.

What I Sold (Jan 2020):

• Scented candle set (not my taste): £8
• Body shop set (already had loads): £12
• Book I won’t read: £4
• Board game (don’t play it): £6

Total made: £30

Not huge, but combined with returns: £127 towards debt.

Step 4: Make a Debt Payoff Plan

You know how much you overspent. Now plan how to pay it back.

Option 1: Aggressive Payoff (4-8 Weeks)

Clear it as fast as possible.

Best if:

• Your overspending is under £500
• You can find extra money quickly
• You’re motivated to clear it fast

Method:

• Do No Spend January
• Make extra money (matched betting, selling stuff, surveys)
• Put every spare penny towards debt

Example:

• Christmas debt: £450
• No Spend January saves: £200
• Matched betting earnings: £250
• Cleared in 6 weeks

Option 2: Realistic Payoff (8-12 Weeks)

Clear it steadily without killing yourself.

Best if:

• Your overspending is £500-1,000
• You can’t do extreme measures
• You need a sustainable approach

Method:

• Cut non-essential spending significantly
• Find £100-150/month extra
• Pay it off over 2-3 months

Example:

• Christmas debt: £800
• Cut spending: £150/month saved
• Side income: £100/month
• Cleared in 12 weeks

Option 3: Gradual Payoff (3-6 Months)

Clear it slowly alongside other financial goals.

Best if:

• Your overspending is £1,000+
• You have other debts to juggle
• You can’t afford aggressive payoff

Method:

• Balance transfer to 0% card if possible
• Pay £150-200/month
• Clear in 4-6 months

My Plan (2020):

Christmas debt: £890 Target: Clear by end February (8 weeks)

How:

• Week 1-2: Return items + sell stuff = £127
• January: No Spend January saves £280
• January: Matched betting = £340
• January: Freelance work = £180
• Total found: £927

Cleared £890 debt + had £37 left over.

It was aggressive, but I wanted it gone fast.

Step 5: Find Extra Money Fast

You need to find money to pay off Christmas debt.

This Week:

Return items: £50-150 Sell unwanted gifts: £30-100 Check for refunds/cashback: £10-30

Total potential: £90-280

This Month:

No Spend January: £200-400 saved [Link to your No Spend January post]

Matched betting welcome offers: £200-400 [Link to your matched betting post]

Online surveys: £50-80 (Prolific, YouGov, Swagbucks)

Sell more stuff: £100-200 (Clothes on Vinted, old electronics, books)

Bank account switching: £100-175 (Switch to new bank for bonus)

Total potential: £650-1,255

That’s enough to clear most Christmas debt in one month.

Next Month:

Matched betting reload offers: £150-250

Freelance/side work: £200-400

Cashback apps: £20-40

Keep No-Spend habits: £200-300

Step 6: Cut January Spending Aggressively

Christmas is over. Time to be strict.

For January and February, cut:

❌ Takeaways (save £60-120/month) ❌ Eating out (save £50-100/month) ❌ Coffee shops (save £40-80/month) ❌ New clothes (save £50-100/month) ❌ Entertainment that costs money (save £30-60/month) ❌ Online shopping (save £60-120/month) ❌ Unnecessary subscriptions (save £20-50/month)

Total potential savings: £310-630/month

I know it’s boring. But it’s temporary.

2-3 months of being strict, then you can relax a bit.

Step 7: Negotiate With Creditors If Needed

If your Christmas debt is on credit cards and you’re struggling:

Contact your credit card company:

“I overspent at Christmas and I’m struggling with payments. Can you:

• Reduce my interest rate temporarily
• Freeze interest for 3 months
• Accept lower monthly payments temporarily”

How to Negotiate with Creditors UK

Many will help if you ask.

I called Barclaycard in January 2020. They froze interest for 3 months while I paid it off.

That saved me about £40 in interest.

Step 8: Don’t Repeat the Mistake Next Year

Once you’ve cleared Christmas debt, plan for next Christmas.

Start Saving in January

Open a Christmas savings account (many banks offer them).

Save £50-100/month starting in January.

By December, you’ll have £600-1,200 for Christmas.

No debt needed.

Set a Christmas Budget

Before next Christmas, decide:

• Maximum spending on presents: £____
• Maximum spending on food: £____
• Maximum spending on decorations/extras: £____
• Total Christmas budget: £____

Stick to it.

Buy Throughout the Year

Don’t leave all Christmas shopping until December.

Buy presents throughout the year:

• January sales: Buy some presents
• Birthday money: Put towards Christmas fund
• See something on sale: Buy it for Christmas

Spread the cost over 12 months instead of 1.

My 8-Week Recovery Plan (What I Actually Did)

Here’s my week-by-week breakdown:

Week 1 (29th Dec – 4th Jan):

• Assessed damage: £890 overspend
• Returned 4 items: £97 refund
• Sold 3 unwanted gifts: £30
• Paid off: £127
• Remaining: £763

Week 2 (5th-11th Jan):

• Started No Spend January
• Started matched betting (made £85 from first 3 offers)
• Packed lunches all week
• Paid off: £85
• Remaining: £678

Week 3 (12th-18th Jan):

• Continued matched betting: £140 that week
• Did online surveys: £18
• Meal planned and shopped at Aldi
• Paid off: £158
• Remaining: £520

Week 4 (19th-25th Jan):

• Matched betting: £95
• Freelance article: £80
• Continued No Spend
• Paid off: £175
• Remaining: £345

Week 5 (26th Jan – 1st Feb):

• Payday! Put all spare money on debt: £200
• Matched betting: £55
• Paid off: £255
• Remaining: £90

Week 6-8 (Feb):

• Cleared final £90 from February payday
• Christmas debt: £0

Total time: 8 weeks Total extra money found: £927

It wasn’t easy. I was sick of packing lunches and doing matched betting by week 6.

But I wanted the debt gone.

What If You Can’t Clear It Quickly?

If you can’t do the aggressive approach, that’s okay.

Realistic alternative:

Pay £150-200/month towards Christmas debt.

£500 debt = cleared in 3 months £800 debt = cleared in 4-5 months £1,000 debt = cleared in 5-6 months

The key: Don’t add to it while you’re paying it off.

Balance Transfer Option

If you have credit card Christmas debt at high interest:

Consider a 0% balance transfer card:

• Transfers debt to new card
• 0% interest for 18-29 months
• Usually 3-4% transfer fee

Example:

• £800 Christmas debt at 22.9% APR
• Transfer to 0% card (£32 fee)
• Pay £50/month for 16 months
• Total cost: £832 (vs £950+ with interest)

Good cards:

• Barclaycard (29 months 0%)
• Virgin Money (28 months 0%)
• Santander (26 months 0%)

Check MoneySavingExpert for current best deals.

Debt Consolidation UK

How to Handle January Sales Temptation

You’re trying to recover from Christmas. Then January sales hit.

“But it’s 70% off!”

You still don’t have the money. You’re in debt.

How to Resist:

1. Unsubscribe from all sales emails Can’t be tempted if you don’t see the sales.

2. Avoid shops completely Don’t window shop. Don’t browse. Stay away.

3. Delete shopping apps No app = no temptation.

4. Remember: It’s not a bargain if you’re in debt 50% off something you don’t need is still wasting money you don’t have.

5. Ask: “Would I buy this at full price?” If no, you don’t actually want it. You just want a bargain.

Recovering from Christmas Debt With Kids

Kids make it harder because:

• They’re bored after school holidays
• They want to do stuff
• You feel guilty saying no

How to cope:

Free activities:

• Parks and playgrounds
• Library
• Free museums
• Nature walks
• Home crafts with supplies you already have

Explain (age-appropriately): “We spent a lot at Christmas, so we’re being careful with money in January. We can still have fun, just free fun.”

Even young kids understand this.

Don’t feel guilty: You gave them Christmas. Now you need to recover financially.

A few weeks of free activities won’t harm them.

Common Mistakes When Recovering from Christmas Debt

Mistake 1: Taking Out a Loan to Clear Christmas Debt

You’re just moving debt around. Don’t do it unless it’s genuinely cheaper interest.

Mistake 2: Only Paying Minimums

Minimum payments on £800 at 22% APR = takes 6 years, costs £1,800 total.

Pay more than minimums if at all possible.

Mistake 3: Continuing to Spend

“I’ll start being strict next month.”

No. Start today.

Mistake 4: Not Having a Plan

“I’ll try to pay it off” isn’t a plan.

“I’ll pay £200/month by doing X, Y, Z” is a plan.

Mistake 5: Feeling Too Guilty to Enjoy Anything

Yes, be strict. But don’t make yourself miserable.

Allow yourself small free pleasures (walk in the park, movie at home, etc.).

Mistake 6: Not Learning the Lesson

If you overspend every Christmas then spend January-March recovering, you’re in a cycle.

Break it by saving for next Christmas starting NOW.

Progress Tracker

Use this to track clearing your Christmas debt:

Starting Christmas debt: £____

Week 1: Paid off £____ / Remaining £____ Week 2: Paid off £____ / Remaining £____ Week 3: Paid off £____ / Remaining £____ Week 4: Paid off £____ / Remaining £____ Week 5: Paid off £____ / Remaining £____ Week 6: Paid off £____ / Remaining £____ Week 7: Paid off £____ / Remaining £____ Week 8: Paid off £____ / Remaining £____

Date cleared: ___ / ___ / 2026

How I did it:

• Returned items: £____
• Sold stuff: £____
• No Spend January savings: £____
• Extra income (matched betting, etc.): £____
• Cut spending: £____
• Other: £____

Total extra money found: £____

Lessons learned: _______________

Final Thoughts

Overspending at Christmas is easy. Recovering from it is hard.

But it’s absolutely doable.

You don’t need to:

• Take out a loan
• Go deeper into debt
• Panic

You just need to:

• Face the numbers
• Make a plan
• Be strict for 4-12 weeks
• Find extra money where you can

I cleared £890 in 8 weeks. You can clear your Christmas debt too.

Start today. Not Monday. Not next month. Today.

Return something. Sell something. Make a plan.

By March, you can be debt-free and ready for the rest of 2026.

Resources:

• StepChange (free debt advice): 0800 138 1111
• Balance transfer comparison: www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards
• Matched betting guide: [link to your post]
• No Spend January: [link to your post]

Last updated: December 2025