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How to avoid a Christmas debt hangover

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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?

Savings49%
Credit card11%
Buy now pay later (e.g. Afterpay)7%
I don't plan on buying anything27%
Personal loan3%
Refinancing my home loan1%
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.

Image: @kikiyam001 via Canva.com

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