Creditspring's ‘Home A Loan’ Festive Pop-Up Helps Parents Pull Off Christmas on Budget

More than half of UK parents (54%) say they are struggling to afford Christmas this year, with two in three cutting back on essentials like food, clothes and heating to cover festive costs, according to new research commissioned by Creditspring.

As the Autumn Budget approaches - and the festive period just weeks away - the findings highlight the growing strain on family finances amid the ongoing cost-of-living crisis, with many parents feeling intense pressure to deliver the “perfect” Christmas. Nearly three in five (56%) say they feel under pressure to create a film-worthy celebration - reminiscent of the classic scenes in films such as Home Alone, while 41% admit to spending more than they can afford.

The price of a ‘perfect Christmas’

On average, parents expect to spend more than £1,100 on gifts, food and decorations this year - yet almost a quarter (24%) say they won’t pay off their festive debt until well into the following summer, if at all. Only one in five (22%) plan a budget and most admit they don’t stick to it.

Despite financial strain, families are already planning months in advance: nearly two thirds (59%) have started Christmas shopping or will do so this week. Many are cutting back on essentials to make it work - including clothing (22%), food (18%) and heating or energy (10%), to meet expectations of a festive season as flawless as the ones they see on-screen. Nearly one in 10 (9%) will also sacrifice a Christmas tree and lights (10%).

Introducing ‘Home A Loan’ - a Christmas shop with a twist

To help ease the pressure, Creditspring opened ‘Home A Loan’, a three-day festive pop-up shop in Tower Hamlets, East London - one of the UK’s most financially deprived boroughs, where 40% of residents live in poverty.

Families borrowed Christmas essentials completely free of charge, including trees, decorations, tableware, and fairy lights, helping them enjoy the magic of the season without the financial hangover.

Borrowed items can be returned after Christmas or kept - with returned decorations donated to local charities to spread festive joy beyond December. Creditspring will loaned thousands of items over the three days.

More than half of parents (53%) say that being able to borrow Christmas items would ease financial stress, and nearly half (45%) say they’d take up the offer if available.

Real families finding festive balance

The pop-up reflects the experiences of households across the UK finding creative ways to make Christmas meaningful without overspending.

Saldiray, 60, from Bow, East London, a Creditspring member, is determined to keep the spirit of giving alive despite rising costs, “All the family are coming to mine this year. Everyone’s cooking an extra plate so we can share with neighbours - we’ll make dinner for around 20 people. Prices have gone up on everything, but we still want to help others. It’s what Christmas should be about.

“Before joining Creditspring, it was always a struggle to make ends meet at Christmas - I used to just about manage with a bit of help from my mum and plenty of Christmas spirit. It’s a relief to know I’ve got that extra support this year.”

Neil Kadagathur, co-founder and CEO of Creditspring said, “We wanted to remind people that the joy of Christmas shouldn’t come with a bill attached. Too many families feel pressured to recreate the perfect, movie-style Christmas - even if it means going into debt. Home A Loan gives families a chance to enjoy all the magic of the season, without the financial stress that often follows.”

Tamsin Powell, consumer finance expert at Creditspring, added, “The best way to keep Christmas affordable is to plan early and stay realistic. Set your budget before you start shopping - it’s easy to overspend when you’re caught up in the excitement. Be clever with gifts; charity shops, pre-loved marketplaces and Secret Santa swaps can be lifesavers. And when it comes to food, cook together, share the costs, and focus on the moments that actually matter. The memories, not the receipts, are what make Christmas special.”

For more information on Home A Loan visit here.