Holiday hangover: Millions of Australians are stuck paying off Christmas debt
Many Australians are entering the new year still paying off Christmas spending, according to new research by Finder.
A Finder survey of 1,006 respondents revealed 6% of Australians – equivalent to 1.3 million people – have landed themselves in debt over the holiday season.
This is not to mention those already in red.
On average, Australians are left with $1,581 in debt after the festive period.
More than half of those in debt from Christmas (56%) – roughly 732,000 people – will take 1-5 months to pay off their owings.
A further 11% will need 6-11 months to pay off what they owe, while 15% will take 12 months or more.
Just 18% will be able to knock off their debt in under a month.
Sarah Megginson, personal finance expert at Finder, said many Aussies are starting the new year with a serious case of 'buyer's remorse' as holiday bills begin to arrive.
"With credit card debt at an all-time high, 2026 has begun as a real financial struggle for millions of Australians.
"At Christmas time we often shop without a budget, which means we can easily overspend on gifts, eating out, cooking and celebrating.
"The cost of Christmas and activities during the holidays has left some households facing a year-long climb back to financial stability."
The research shows gen Y overindulged the most, with 9% in Christmas debt, followed by gen X (7%).
Megginson said if you feel overwhelmed, don't panic – and instead, start taking action.
"Focus on the debts that cost you the most in interest, like credit cards, and make a plan to pay them off. A proven method is to choose one card first to pay off and then cancel.
"Most importantly, you need to stop spending on that card so you can get off the debt treadmill.
"You can make even quicker progress if you call your debt providers and ask if you can move to a lower interest rate, or take advantage of interest-free balance transfers – they can give you up to 26 months of relief, making it much easier to clear your balance faster."
Megginson noted the worst thing you can do is keep your head in the sand, so if there's a temptation to ignore the situation or you don't know where to start, reach out for support.
"The National Debt Helpline offers free financial counselling, and the government's MoneySmart website offers plenty of guides and information.
"Between interest and BNPL fees, the cost of waiting to take action is too high. Setting a plan today is the only way to ensure you aren't still paying for this Christmas when the next one rolls around."
Do you think you will go into debt this holiday season?
| Yes | 6% |
| No | 94% |
| Source: Finder survey of 1,006 respondents, December 2025 |  |
How long will it take you to pay off this year's holiday season debt?
| Less than 1 month | 18% |
| 1-5 months | 56% |
| 6-11 months | 11% |
| 12 months or more | 15% |
| Source: Finder survey of 1,006 respondents, December 2025 | |
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 1,006 respondents from December 2025.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics.
- The survey has been running monthly since May 2019.
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