The number of people taking out credit cards in Blackburn with Darwen increased by around 44 per cent in November and December last year, according to Citizens Advice.

This came as people looked for ways to manage their increased spending over the Christmas period during the cost of living crisis.

Debt advice charity StepChange has also said it advised more people on January 3, the first working day after the Christmas break, than on any other day in 2022.

With more and more people struggling to manage their finances through the current climate, Citizens Advice centres are taking on more first-time callers than ever before.

Gemma Orme, debt specialist & technical supervisor at Citizens Advice Lancashire West, said: “Looking at the stats in Blackburn with Darwen between November and December 2022 the increase in people taking out credit cards was around 44 per cent.

“Those are the people that have come to us already saying they need help with these debts, which means we’ve logged it.

"However, what tends to happen is that there will be another group of people who haven’t yet come to us but it happens when the bill for the payday loan or the buy-now-pay-later they’ve got comes out.

“That normally comes at the end of January so we normally see another influx around the start of February. We’re expecting that will go up again.

“It’s generally for debts taken out in the same period for the same reason – for Christmas presents, or the food, or anything that people need to have a good Christmas, they will go and borrow the extra money that they need because they’re not able to do that with their current income.”

With the amount of money people are having to borrow, people are also finding it hard to escape their financial issues, ending up in vicious circles where they are constantly repaying debt.

Gemma added: “A lot of our clients will say they purposely take out a small loan before Christmas, and then spend the next 12 months paying it back so they can do it again next December.

"That will be happening more across the board as things get more difficult.

“If you’re having to pay more across the board then obviously it’s more difficult to afford things once Christmas comes around.

"So there may be people this year that previously never took out loans before Christmas that have done this year.

"That’s probably going to account for the increase between years.”

StepChange, a debt counselling charity, said: “Christmas can put great financial pressure on people, causing some to rely on credit and spend more than they can afford.

"In some cases, this can lead to a debt hangover in the new year that may take many months or even years to repay.”

In a poll for the BBC, a third of respondents who used credit to help get through the Christmas and holiday season said they were not confident about their ability to repay.

The poll also suggested that people are finding alternative ways to cut costs in order to pay their bills, with the majority of respondents saying they have been turning the heating down and lights off, or reducing their grocery shop.