ONE in four people in Scotland will struggle to afford Christmas this year, according to a new report.

The survey, commissioned by the StepChange Debt Charity, also found that one in every 20 people are still paying off last year’s Christmas debt.

That charity is now warning households against relying heavily on credit after the demand for debt advice rose by almost one third after the last festive season.

The total number of people going through debt advice at the charity has risen by over 10% year on year.

For StepChange, January 2023 was the busiest month for more than two years, with the charity seeing a 32% rise in demand compared to the previous January.

The charity is urging people to reach out for support if they’re worried about their finances this Christmas.

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“People understandably feel pressured around Christmas time to spend money to create special moments and memories with their loved ones,” said CEO Vikki Brownridge.

“However, this pressure can often encourage people to spend more than they can afford, and turn to credit to cover these costs.

“Against a backdrop of almost two years of high inflation, it’s very likely that relying too heavily on credit at Christmas could lead to debt problems in the New Year. At StepChange, we see some of our busiest days during January each year, with last January being our busiest month for several years.

“We would urge those who are thinking about borrowing to cover festive costs to always carefully consider whether those credit repayments will be comfortably affordable when the New Year comes around.

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“Many adverts around this time of year imply that spending is the way to create a happy Christmas, but in reality, people would prefer their loved ones to be free from financial worries and problem debt.

“If you are struggling with debt now or in January and beyond, it’s never too soon to reach out for help. Free debt advice and support is available from charities like StepChange.”

The StepChange Christmas report follows new research that found almost a quarter (24%) of older people had to use savings last year to cover essential costs, leaving them even less able to cope this winter.

Worryingly, 10% of older people with a low household income (under £20k) said they did not have savings to fall back on as they struggled to make ends meet last year.