Borrow
Aussies tipped to spend beyond their means this Christmas
Aussies are tipped to spend beyond their means this Christmas, with credit cards and buy now, pay later services the preferred choice to make up for budget shortfalls, according to a recent survey.
Aussies tipped to spend beyond their means this Christmas
Aussies are tipped to spend beyond their means this Christmas, with credit cards and buy now, pay later services the preferred choice to make up for budget shortfalls, according to a recent survey.
According to CreditSmart, a quarter of surveyed respondents are expected to blow the budget by $500-$2,500, having a large impact on their finances in the new year.
Geri Cremin, credit reporting expert at CreditSmart, said “Christmas is a wonderful time of celebration, but too many people succumb to the pressure to overspend at this time of year.”
The poll also asked Australians what they plan to spend the most money on. Half said they would spend the most on gifts as their number one holiday-related expenditure, followed by food and drinks (44 per cent), entertainment (29 per cent) and shopping for themselves (26 per cent).
Ms Cremin believes consumers can be persuaded to spend more than they intend, especially during Christmas.
“Peer pressure from social media, online promotions and easy availability of credit have led consumers to spend more each year than they would normally do, especially during the festive season, which may hurt their hip pocket.”
Most popular credit choices
According to CreditSmart research, credit cards still remain the most popular choice for consumers, with over 40 per cent of consumers saying they will spend on their plastic if they need credit this Christmas.
Buy now, pay later followed as the second most popular choice, with 20 per cent of people saying they would use this service this Christmas if they needed credit.
“There are lots of promotional credit offers made available in the lead-up to Christmas, from extended interest-free periods on credit cards, to retailers and brands offering special buy now, pay later discounts to allow consumers to buy more,” Ms Cremin said.
She warned, however, that consumers must remember that buy now, pay later is a credit product just like any other loan and will take repayments from your regular bank accounts that you use to pay other utility bills such as rent, electricity and groceries.
Finally, the report found that not everyone has caught up with last year’s repayments, with 4 per cent of respondents admitting they are paying off Christmas debts from last year.
About the author
About the author
Credit card
Top strategies for improving your credit score in 6 months
Maintaining a healthy credit score is essential for financial wellbeing, especially in Australia where credit scores significantly influence loan and credit card approvals. Read more
Credit card
Block announces first integration with Afterpay
Block’s acquisition of Australia’s buy now, pay later platform has been completed. Read more
Credit card
Afterpay v Zip: Which is better value?
The two biggest brands in BNPL may have more in common than you think. Read more
Credit card
BNPL to boom amid seasonal spending
There’s never been a better time to buy now, pay later than the holiday season. Read more
Credit card
Experts say BNPL data underutilised by credit sector
BNPL took off among Australian consumers so fast that credit bureaus are still trying to catch up. Read more
Credit card
Calls for online gambling ban intensify
A parliamentary committee has backed calls for a new ban on credit card gambling. Read more
Credit card
Afterpay looks to find foothold in subscriptions
Afterpay will let customers break their monthly bills into instalments from early next year. Read more
Credit card
Credit cards slip 4%, but BNPL isn’t the culprit
Traditional credit cards have continued to decline in popularity over the course of the pandemic. Read more
Credit card
Top strategies for improving your credit score in 6 months
Maintaining a healthy credit score is essential for financial wellbeing, especially in Australia where credit scores significantly influence loan and credit card approvals. Read more
Credit card
Block announces first integration with Afterpay
Block’s acquisition of Australia’s buy now, pay later platform has been completed. Read more
Credit card
Afterpay v Zip: Which is better value?
The two biggest brands in BNPL may have more in common than you think. Read more
Credit card
BNPL to boom amid seasonal spending
There’s never been a better time to buy now, pay later than the holiday season. Read more
Credit card
Experts say BNPL data underutilised by credit sector
BNPL took off among Australian consumers so fast that credit bureaus are still trying to catch up. Read more
Credit card
Calls for online gambling ban intensify
A parliamentary committee has backed calls for a new ban on credit card gambling. Read more
Credit card
Afterpay looks to find foothold in subscriptions
Afterpay will let customers break their monthly bills into instalments from early next year. Read more
Credit card
Credit cards slip 4%, but BNPL isn’t the culprit
Traditional credit cards have continued to decline in popularity over the course of the pandemic. Read more