Post-summer debt is hitting families now – what to do now before it gets worse

Post-summer debt is hitting families now – what to do now before it gets worse The summer memories may be lovely, but the bills landing now can feel anything but - Vicky Parry explains the calm, practical steps that can stop a difficult September becoming a debt emergency There is a particular kind of financial dread that arrives at the end of summer. The children go back to school, the evenings begin drawing in and suddenly the spending we pushed to the back of our minds is sitting there in black and white. The credit card has the holiday on it. The overdraft covered the days out. Buy now, pay later instalments are starting, just as uniform, school meals and travel costs hit the account. If that sounds familiar, please know that you have not “failed” at money. Summer is expensive, especially for families trying to cover six weeks of childcare, food and entertainment while keeping up with ordinary bills. But this is also the moment to act. A debt problem is usually easier and cheaper to deal with before payments are missed. The national picture shows why so many households feel squeezed. According to the Bank of England’s Money and Credit report for July 2026, published on September 1, households took on a net £2 billion in consumer credit during the month. Consumer credit was growing at 9.2% a year, while credit-card borrowing was growing at 12.5%. The effective interest rate paid on interest-charging credit cards was 21.45%. Debt charities are seeing the human consequences. StepChange’s 2025 Statistics Yearbook, published in March 2026, shows that the average total of arrears and unsecured debt among its new clients rose by 10%, from £17,936 in 2024 to £19,701 in 2025. Six in ten of its new clients were in some form of employment, which matters: serious money trouble is not confined to people without jobs. Meanwhile, Ministry of Housing, Communities and Local Government figures show that the cumulative amount of council tax outstanding in England reached £7.4 billion at the end of March 2026. That total, which includes arrears stretching back several years, was £782 million higher than a year earlier. Responding to the Government’s initial release of those figures in June, StepChange chief executive Vikki Brownridge said in a published statement: “With one in three of those coming to StepChange behind on this bill, these latest figures are no surprise to us.” That is the reality behind “ post-summer debt”. It may begin with a few treats or a break paid for on plastic, but it becomes dangerous when repayments leave too little for rent, council tax, energy or food. If you feel too overwhelmed to start Debt does not only affect a bank balance. Worry can interrupt sleep, make it difficult to concentrate and leave people feeling ashamed, frightened or completely frozen. If you have been unable to open a bill or answer a call, that does not mean you are lazy or irresponsible. Feeling overwhelmed can make even a small decision seem impossible. Do not try to solve everything in one sitting. Choose one manageable action: open one letter, write down one balance or ask someone you trust to sit with you while you make one phone call. A free debt adviser can also help you work through the figures without judgement and may be able to speak to a creditor on your behalf. Please look after your mental health as well as your money. If you are struggling to cope or need someone to listen, call Samaritans free on 116 123 at any time. If speaking feels too difficult, text SHOUT to 85258 for free, confidential support, 24 hours a day. In England, anyone needing urgent help for their mental health can use NHS 111 online or call 111 and select the mental health option. Services differ elsewhere in the UK, so use the urgent mental health guidance for your nation. If you or somebody else is in immediate danger, call 999 or go to A&E. First, take the fear out of the figures My first piece of advice is the one nobody enjoys: open every app, statement, email and letter. Write down the lender or company, the balance, minimum payment, interest rate and payment date for each debt. Include overdrafts and buy now, pay later plans, which are easily forgotten because they may sit outside the main bank account. Then make a very simple monthly budget using your actual bank statements, not what you think you spend. Put down income, essential bills, food and travel first. What is left is the amount available for debt payments. This is not about producing a perfect spreadsheet or blaming yourself for every coffee. It is about finding out whether this is a short-term squeeze you can clear over a few months, or whether the minimum payments are already unaffordable. Protect the bills with the most serious consequences Do not automatically pay the loudest company or the card charging the highest interest first. Refer to a debt priority plan. Rent or mortgage, council tax, gas and electricity, court fines, tax and essential hire-purchase agreements can be priority debts because the consequences of not paying them can be much more serious. Credit cards, unsecured loans, catalogues and most buy now, pay later debts are generally non-priority debts. That does not mean ignoring the latter. It means getting independent advice before splitting limited money between creditors. MoneyHelper says anyone facing court action, bailiffs, disconnection or possible eviction should seek free debt advice urgently. Speak to lenders before the payment bounces If you know a payment will not clear, contact the lender now. Explain that you are in financial difficulty, say what you can realistically afford and ask to be passed to its financial-support team. MoneyHelper says that, depending on the circumstances, a lender may reduce or stop interest on arrears, offer more flexible repayments or allow a customer to pay less, or nothing, for a period. Ask the lender what each option would cost overall and how it may affect your credit file before agreeing. Keep notes of every call and save copies of emails or web chats. Never promise a payment that would leave you unable to buy food or pay the rent simply because you feel under pressure on the phone. Also be wary of firms charging for debt help or promising an instant write-off. Free, confidential support is available from StepChange, National Debtline, Citizens Advice and MoneyHelper. A regulated adviser can look at the whole picture and explain the options that genuinely fit your circumstances. Check whether money is being left unclaimed A benefits check is worth doing even if you work, rent privately or have never claimed before. Entitlement can change after a drop in hours, a rent increase, a separation, illness or a change in childcare costs. Look at Universal Credit, help with childcare and any council tax, rates or local welfare support available where you live. Speak to your energy and water companies too and ask what reduced tariffs, hardship funds or affordable payment arrangements are available. Run a quick benefits check to find support you may be missing. One successful claim or reduced household bill will not magically wipe out debt, but it can create the monthly breathing room that makes a repayment plan workable. Find cash without making life miserable For the next 30 days, treat the household finances as a reset rather than a punishment. Pause subscriptions you are not using, return unopened purchases that are still within the retailer’s returns period and check whether any annual policies can be switched without cancellation fees. Sell good-quality clothes, toys or electronics that genuinely are no longer needed, but do not sell essentials for a fraction of their value in a panic. These realistic ways to make extra money can help you build a small repayment buffer. Put any spare amount towards the costliest non-priority borrowing after priority bills and agreed minimums are covered. Some people prefer clearing the smallest balance first for motivation; others target the highest interest rate to reduce the total cost. Either approach is better than moving debt around without a plan. Avoid taking a new loan simply to make this month look tidier unless a free debt adviser has helped you establish that consolidation is suitable and affordable. A lower monthly payment can hide a longer term and a much higher total repayment. Make next summer cheaper – but deal with today first Once the immediate situation is stable, add up what this summer really cost and divide it by ten or twelve. Even a modest monthly summer pot can cover ice creams, travel or one special day out next year without sending the cost into autumn. But please do not jump ahead to savings challenges if you cannot meet essential bills today. The priority is food, housing, energy and getting proper help. Post-summer debt thrives on silence and avoidance. Opening the statements will not make the numbers worse. Asking for help will not put a black mark against your character. The most powerful first step may simply be saying: “I cannot afford the current payment, and I need to discuss my options.” Do it today, before another round of interest and charges turns a difficult summer hangover into a winter crisis. Free help - MoneyHelper debt advice locator: moneyhelper.org.uk - StepChange: stepchange.org or 0800 138 1111 - National Debtline: nationaldebtline.org or 0808 808 4000 - Citizens Advice: citizensadvice.org.uk If you have received notice of eviction, court action, bailiff action or threatened disconnection, seek free independent debt advice urgently. The information in this article is general guidance and was correct at the time of publication. It does not constitute financial, legal, benefits or mental health advice. Debt remedies, benefit entitlement and creditor action depend on individual circumstances and can differ across the UK. Before taking action or agreeing to a repayment arrangement, consider speaking to a free, independent and appropriately qualified adviser.