With roughly two weeks until Christmas, Australians are in the middle of a spending spree. But will you have yourself a merry debt-free Christmas, or face a nasty financial hangover this festive season?
Research from Fair Go Financing has found more than one in five Australians are using credit cards, obtaining personal loans, or borrowing money from family members of friends to finance their Christmas purchases. Peer pressure and a lack of planning are the two key reasons fueling this overspending. Peer pressure can come from families hoping to make this Christmas better than the last, and also children keen to obtain the latest toys.
You can spend better this season by being realistic about your spending capabilities and sticking to a clear budget. You can also visit discount stores and online retailers to find great presents at a fraction of the prices of big retailers. Just remember that if you’re shopping online, shipping costs can add up. Buying multiple items from the same online store can help you qualify for free shipping.
Presents are the biggest Christmas expense, accounting for more than half of all Christmas spending. But don’t forget to budget for other expenses including festive food and beverages, travel expenses, socialising, and cards, wrapping, and decorations.
With so many Aussies going into debt, it’s little wonder that nearly a third of us are stressed about the shape of our finances in the New Year. Women are more worried about their budgets than Australian men.
If you’re one of the many Australians concerned about the state of your budget, ease your worries with a free, no obligation financial health check. Call us on 1300 854 833 to learn more.