Ireland’s Hidden Year-end Financial Stress Test—and How to Pass It

Every year around the holiday season, many Irish households face a perfect storm: Christmas spending, annual bills and rising costs, particularly with winter bills taking effect. For many, this is when financial stress peaks for the year - and when decisions made (or avoided) can shape the one ahead. The stress test this year comes against a backdrop of economic uncertainty, continued cost-of-living pressure, and challenges to household budgets, making the need for proactive planning more critical than ever.

At Pepper Advantage Ireland, we manage thousands of mortgages and loans across the country.

Each year, we notice a similar pattern: late payments tend to rise by around 10% around the holiday period. We also know that, for many different reasons, customers sometimes wait longer than they need to before reaching out for support. It’s important to stress that getting in touch early can make a big difference. Early engagement leads to more time to find a solution that works — and the less stress that may be felt along the way.

The Hidden Risk: Misplaced Priorities

After the Christmas period, some households may feel pressure to focus on short-term debts like credit cards, car loans or personal loans, especially since these can carry higher interest rates. It’s also common for this to impact how people manage their mortgage payments.

For those juggling different financial commitments and starting to feel concerned — even if you’re not behind — getting in touch early can help us explore what options may be available to relieve some of the pressure. The earlier we understand a customer’s situation, the more flexibility we usually have to find a workable approach together. Early engagement is crucial.

From Debt Management to Financial Collaboration

The industry has made a concentrated effort to offer proactive support to any customer who may be struggling. This is important information to have as many borrowers may not know that there are many options that can be used to alleviate financial stress. We offer support and guidance for any customer and a simple check in can make a real difference. We regularly help customers assess affordability, budget, and plan ahead. Supporting borrowers through financial challenges is part of building a sustainable financial ecosystem.

For Households: Practical Steps to Stay Ahead

1. Act early if worried about repayments – More options are available the sooner you engage.
2. Assess your repayment capacity – Update your income and expenditure at year-end to identify stress points.
3. Keep financial documents organised – Up-to-date statements and proof of income speed up support requests.
4. Build an emergency buffer – Even a modest fund can prevent short-term shocks from becoming long-term  challenges.
5. Check your credit status – Address missed or partial payments quickly to avoid charges or credit issues.
6. Know your support options – speak to an independent financial advisor to understand what arrangements may apply if circumstances change.
7. Stay alert to fraud – Your servicer will never ask for sensitive details out of the blue. 
8. Plan for annual costs – Budget for school fees, insurance and tax bills to avoid seasonal strain.

Passing the Stress Test

The holidays will always bring financial pressure. But it doesn’t have to bring crisis. With early engagement, realistic planning and collaborative solutions, households can build resilience in an uncertain economy. At Pepper Advantage, we see the difference these steps make every day. The challenge now is to make them the norm.