Christmas can be a joyful time, but once the decorations come down, many of us are left thinking about the cost. January often brings tighter budgets, unexpected bills and the challenge of getting back on track financially. If money feels stretched right now, you’re not alone - and there are positive steps you can take to feel more in control.
After the festive period, it can help to pause and think about your finances. Start by reviewing what’s coming in and going out each month. Seeing everything written down can make it easier to spot where small changes might help, whether that’s switching to cheaper alternatives, setting spending limits or planning ahead for upcoming bills.
A simple savings habit – however small – can help for future costs and reduce the need to borrow. Budgeting apps, bank tools or a basic spreadsheet can all be useful ways to track spending and stay on top of your money.
It’s also a good time to be mindful of options like Buy Now, Pay Later schemes. While they can seem helpful in the moment, they can quickly add up and make managing repayments more difficult later on. Being informed about how they work can help you make safer choices.
The risks of Buy Now, Pay Later
When recovering from the festive period, Buy Now, Pay Later (BNPL) services such as Klarna, Clearpay and PayPal Credit can feel like an easy way to spread the cost. While they can be useful in some situations, it’s important to remember that BNPL is a form of borrowing.
Before you click “pay later”, think about the following:
- Late fees – Missing a payment can lead to charges starting at around £5 and rising to as much as 25% of the item’s value.
- Your credit score – Some providers may report missed payments to credit reference agencies, which could affect future borrowing.
- Overspending – Because BNPL is quick and convenient, it’s easy to take out multiple plans without realising how much they add up to.
- Limited protection – BNPL doesn’t always offer the same consumer protections as credit cards.
To reduce the risks, try keeping track of all repayments in one place, planning ahead with regular savings, and pausing before buying non-essential items.
Westcountry Savings and Loans
We’re proud to work closely with Westcountry Savings and Loans, a local and ethical credit union offering responsible options for borrowing and saving. As a LiveWest customer, you can access their information, education and support to help you feel more confident with your finances.
They review every application individually and offer loans from £100 to £15,000. If you’re looking for help with budgeting, saving or exploring affordable credit, they’re a great place to start.
For more guidance on managing your money this winter — including budgeting tools and support with everyday costs — visit our Cost of Living page for up-to-date advice and support.