January is the most difficult month financially for families: many are left with a deficit in their accounts

January is perhaps the most difficult month for families financially, as is also indicated by the fact that retail sales almost always fall from December to January. In such cases, it is particularly important to know what happens to overdraft lines and credit card debts that have gone into the red, and whether the repayment of loans taken out before Christmas will start properly.

overdraft lines can be particularly fraudulent, as many people view the line of credit as if the money were theirs in the first place, so their balance is in the red for a significant part of the month. This can easily happen because the credit limit can be 2-3 times the net income, or 1.5-2 million forints, so the incoming salary will not necessarily increase the balance.

At the same time, the overdraft facility is one of the most expensive types of credit. Its interest rate ranges from about 20-40 percent, and the APR can be as high as 50 percent. For example, if you fully draw down your 300,000 HUF credit line, you will pay 8,750 HUF per month at 35 percent interest. Over a year, this is 105,000 HUF, which is a huge amount compared to the size of the loan. With a drawn down credit line of 1 million HUF, this would be 350,000 HUF per year with the above interest rate.

You should also pay attention to credit card debt at the beginning of the year, because it can be an expensive pastime. The issue is relevant only because by October 2025, the amount of credit card receivables has increased to an eight-year high, while less than half of them are interest-only, which is a significant improvement compared to the 60-65 percent rate in previous years. This means that the majority of the approximately 1.14 million credit card holders will settle their debts before the grace period, thus allowing them to use the bank’s money interest-free. However, in January there is a greater chance of a slippage, which can be costly, as interest rates are usually around 32-38 percent. Sometimes banks quote a monthly interest rate, but the 3.13 percent monthly interest rate actually equates to 37.56 percent per year.

It is important that if you are unable to repay your credit card debt before the grace period expires, you pay at least the minimum repayment amount in that month, otherwise you can expect to pay penalty interest. The minimum monthly payment is usually 5-10 percent of the total credit limit used.

Of course, in skillful hands, credit cards can even generate income, thanks to refunds after purchases. For example, with the Erste Max credit card, you can collect up to 90 thousand HUF cashback per year: 3 percent cashback on the two selected categories and 1 percent cashback on the other categories, up to a maximum of 250 thousand HUF spent per month. In addition, you can now get up to 10 percent cashback (maximum 10,000 Erste Forint) on your grocery purchases, and you can get an additional 5,000 – 5,000 Erste Forint if you digitize your credit card and apply for it online.

Granit Bank offers a 3 percent cashback on all purchases made until January 31, 2026, starting from January 1, 2026.