5 million Aussies will put Christmas on credit

A survey by Finder revealed 24 per cent of Aussies will rely on some form of credit to cover the cost of Christmas this year, which is about 4.8 million Australians who will be pushed into debt this festive season.

The research found 13 per cent will depend on their credit card, while 9 per cent will turn to buy now, pay later services for expenses incurred.

The majority of Australians (53 per cent)  or around 10.6 million people will rely on their savings.

According to Finder’s RBA Cash Rate Survey, (76 per cent, 19/25) of experts said Aussies are more likely to turn to credit cards and BNPL to fund the festive season compared to last year.

Rebecca Pike, money expert at Finder, said the rising cost of living has pushed Australians to dive into their savings or think of going beyond their means this silly season.

“While it might seem like a good idea at the time, using credit as a means of funding the holiday season if you don’t have the cash readily available, could come back to bite you,” she said.

With the cost of living skyrocketing, Finder research also revealed almost three-quarters (72 per cent) of Australians are taking some action to save money in the lead-up to Christmas, equivalent to 14.4 million who are feeling the pinch.

More than one in 10 (11 per cent) have taken on a second job or side hustle to cover the cost.

Ms Pike said the holiday season is short-lived, but debt can take ages to pay off so you could be left paying the price long after the tree has been put away.

“If you find yourself struggling to pay off debt in the new year, speak to your bank or provider to see what support is available,” she said.