Brighton named UK city most in debt after Christmas
Brighton & Hove is expected to be the UK city left most in debt following Christmas spending, according to new research from Newcastle Building Society.
The study estimates that residents in Brighton & Hove will be £349 in debt by the end of December, once festive spending and everyday living costs are taken into account. High housing costs and above-average seasonal spending mean incomes are being stretched further than in any other major UK city.
The research analysed median earnings, typical monthly living expenses, rent costs, non-essential spending, and forecast Christmas outgoings, comparing them against expected December income to calculate how much money residents are likely to have left, or owe, after the festive period.
Cities feeling the biggest post-Christmas squeeze
Brighton & Hove tops the list, followed closely by London, where residents are forecast to be £322 in the red, and Bristol, where households are expected to be £66 overdrawn after festive spending.
Manchester also narrowly falls into deficit, with residents predicted to be £6.60 short by the end of December.
At the other end of the scale, cities such as Leeds, Cardiff and Newcastle upon Tyne are expected to retain the most disposable income, with residents in Leeds forecast to have £335 remaining once Christmas costs are factored in.
With December traditionally being the most expensive month of the year, the findings suggest many households will be entering January under financial pressure. A period often referred to as one of the toughest months for household budgets.
Chris Brown, Head of Savings Product Propositions at Newcastle Building Society, says getting organised is key to easing the post Christmas financial hangover.
"It may sound simple, but if I could recommend one money management habit I’d love everyone to adopt as a financial New Year’s resolution it would be to get organised. Set a clear savings goal and stick to it. Write down all your monthly outgoings so you can see exactly where your money is going – this makes it much easier to spot where you can cut back.
Don’t forget to reward yourself when you hit your milestones, too. Small treats will help keep you motivated, hitting your brain’s reward system in all the right places. This will help to make the habit easier to maintain over the long term. "