St John's in Reid gave out hampers and hosted a Christmas lunch on Monday.

Chief executive Jason Haines said while demand for services was already "ridiculous", it would probably increase in the next few weeks.

Buy-now, pay-later services like Afterpay or Cash Train allow people to pay for goods in installments or loan smaller amounts of money on very high-interest rates.

"They're going to be a lot of people have used easy pay for Christmas periods," Mr Haines said.

"So by the time we open back up on the [Jan 2], people would be having no money for six to nine weeks to pay for all their Christmas presents that they bought on the easy pay."

One-in-ten Australian families in financial stress accessed a payday loan from July to September 2022, according to the National Bank of Australia.

Many Australians who take out payday loans end up in a "debt spiral", federal Assistant Treasurer Stephen Jones says.

"Payday borrowing by some vulnerable consumers was getting them into debt spirals, where debt repayments eat away more and more of a person's income over time," he said.

"Evidence suggests that [the risks of buy now, pay later schemes] are disproportionately affecting women, First Nations communities and people on low incomes."

Nearly half of loans taken out from 2016 to 2019 were by single mothers.

There is too much pressure for families at Christmas-time, Mr Haines said.

"As society we put out a lot of pressure to conform to what everyone else has," he said.

"[You try] for your kids and but ultimately if you can't afford it you, you can't afford it. That's why charities like us like to give as much as we possibly can at Christmas time."

St John's provides food to those who need it all year round. There has been a huge increase in demand this year, Mr Haines said.

"We've had so many families that are living in cars at the moment," he said.

St John's would see 300-400 families on average, but this December saw 1100, Mr Haines said.

"The need is a ridiculous amount," he said.

Christmas can be an especially lonely time for some Canberrans, which is why St John's in Reid has held a lunch for the last 32 years.

Deb Bult was one of hundreds of Canberrans having lunch at the hall on Monday.

She has spent 14 Christmases with the charity, and shared a meal with friends she has made through the organisation.

"I just love it here, and it's the only sort of Christmas I get," she said.

"St John's is my only family."

The lunch is especially important for people lonely or struggling at Christmas, Mr Haines said.

"Everyone says Christmas is all about joy [but] if you don't have any family or friends, it's a extremely lonely time," he said.

"As society we're told Christmas is such a fun and exciting time of year, but if you don't have anyone, you don't have any money or have any gifts, then it's just a day that brings such sorrow.

"When they come here, we try and give them that little bit of joy."

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In addition to the lunch, there were two church services, some singing and presents for children on Sunday.

Ms Bult has lost all her family members to cancer. She said St John's staff were caring and lovely, and had helped fill the hole her family had left.

"If you're lost and lonely and feeling low, come to St John's because we're all one big happy family here. And don't forget that there is someone in the world for you," she said.