Caught out by Christmas costs: Aussies face $2.7 billion debt burden
Millions of Australians have landed themselves in Christmas debt that will take months to repay, according to new research by Finder.
A Finder survey of 1,010 respondents revealed 8% of Australians – equivalent to 1.7 million people – are nursing a holiday hangover.
The average amount of debt owed is $1,634, which comes to a nationwide total of $2.7 billion.
Of those in debt from Christmas, almost half (43%) – 688,000 people – will take up to 5 months to pay off what they owe.
The research found 1 in 5 (19%) – 304,000 people – will need between 6-11 months, while 15% will need 12 months or more to pay off their debt.
Just 1 in 4 (23%) say they will be able to knock off their debt in less than a month.
Sarah Megginson, personal finance expert at Finder, said overspending will haunt Aussies long after Christmas.
"Millions of Australians have hit 2025 already burdened with debt.
"During December, many Australians racked up substantial credit card bills and buy now, pay later balances, setting themselves up for a significant financial strain in the months to come."
The research shows gen X plan to overindulge the most with 11% going into Christmas debt, compared to just 6% of baby boomers.
A credit card debt of $1,643 on an average purchase rate of 20% could easily cost you hundreds of dollars in interest alone over the course of a year.
To help Australians make better financial decisions while still enjoying the perks of credit cards, Finder has today announced the winners of its Credit Card Awards 2025.
Megginson said the award-winning credit cards serve as a valuable guide for Australian consumers seeking the best options.
"Our team of experts conducted an in-depth analysis of 262 credit cards issued by 80 banks and financial institutions to identify the top performers for 2025.
"These awards undermine the importance of why it pays to shop around so you secure the credit card that best meets your individual requirements."
The St.George Vertigo Card, BankSA Vertigo Card, and Bank of Melbourne Vertigo Card (all owned by parent company Westpac) took the top spot for Best Balance Transfer Credit Card. Each card offers an impressive 0% balance transfer rate for 24 months with 1% balance transfer fee.
For travelers seeking to maximise their frequent flyer points, the Qantas American Express Ultimate Card won Best Frequent Flyer Card – Qantas, while Westpac's Altitude Velocity Black won Best Frequent Flyer Card – Velocity.
Bankwest's Breeze Platinum Mastercard scored Best Travel Credit Card, while ANZ's Rewards Black Credit Card was awarded top gong for Best Rewards Credit Card.
Megginson said there were some strategies to manage the problem.
"Look for the debts that are costing the most in interest and fees and focus on paying those off first, or you could even transfer them to a lower-cost option as quickly as possible.
"Interest-free balance transfer credit cards, with a small balance transfer fee of 1-2%, are available for up to 30 months and could be a lifeline for those who splurged at Christmas.
"It could be much higher if you end up paying a lot of BNPL fees, and it could take you until next Christmas to pay it off if you don't have a plan.
"Don't settle until you've explored all options – the only way to guarantee you get the best deal is by shopping around, " Megginson said.
For the full list of Finder's Credit Card Award winners, go to https://www.finder.com.au/finder-awards/product-awards/credit-card-awards.
Do you think you will go into debt this holiday season?
| Yes | 8% |
| No | 92% |
| Source: Finder survey of 1,010 respondents, December 2024 |  |
How long will it take to pay off this year's holiday season debt?
| Less than 1 month | 23% |
| 1-5 months | 43% |
| 6-11 months | 19% |
| 12 months or more | 15% |
| Source: Finder survey of 1,010 respondents, December 2024 | |
Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 1,010 respondents from December 2024.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics.
- The survey has been running monthly since May 2019.