How to avoid a Christmas debt hangover
11% of us are putting our holiday shopping on plastic.
It's the most wonderful time of the year—but it isn't cheap.
Australians will spend $30 billion this festive season.
How will we fund that?
Almost half of us (49%) are organised enough to pay for holiday spending using our savings.
But some of us are going into debt instead.
Concerningly, over 1 in 10 of us will rely on our credit cards to cover holiday season costs, Finder research reveals.
How will you primarily pay for Christmas?
| Savings | 49% |
| Credit card | 11% |
| Buy now pay later (e.g. Afterpay) | 7% |
| I don't plan on buying anything | 27% |
| Personal loan | 3% |
| Refinancing my home loan | 1% |
| Other | 2% |
Another 7% will use buy now pay later to fund seasonal spending, while 27% of us claim we're not buying anything at all this Christmas. I am not sure I believe all of those cheapskates.
Incurring high-interest debt to fund presents and food is never a good idea.
If you took a year to pay off the average Christmas spend of $1,479 on a credit card at typical interest rates, you'd rack up $148 in interest charges.
Wouldn't you rather spend that money on yourself?
Keeping your holiday costs under control is ultimately a question of being organised.
Take advantage of supermarket specials so your food spending doesn't spiral.
The end-of-year break is also a great time to review all your expenses and find savings for the year ahead.
Easy switches such as changing to a cheaper mobile plan or getting a better deal on car insurance can save you hundreds of dollars.
Get more helpful money tips to help you save.