Close to two million Australians are nursing a Christmas debt hangover that will take months to repay after spending billions over the festive season.
A recent survey by consumer comparison site Finder found Australians owed $2.7 billion in holiday spending, with the average shopper $1634 in debt.
Finder said based on the survey of 1010 respondents that 8 per cent of Australians (about 1.7 million people) expected to go into debt during the holiday season and one in five of those shoppers would need at least six months to pay the debt off.
Australians are nursing a $2.7 billion Christmas debt hangover. Credit: Dominic Lorrimer
In 2024, the Australian Retailers Association said $69.8 billion was forecast to be spent by shoppers in the lead-up to Christmas, with the average shopper spending $707 on gifts. Bargain-hunting shoppers spent a further $1.3 billion at shopping centres and stores on Boxing Day, spurring a $3.7 billion spending spree – a 2.7 per cent increase from last year – in the six days after Christmas.
Financial counsellor Deb Shroot said Financial Counselling Australia generally saw an increase in demand for counselling post-Christmas, which then remained high throughout the first quarter of the year.
“It’s an expensive time of year for many people, with gifts, celebrations and holidays,” she said. “On top of that, people are often hit with extra debts and bills like the start of school costs in the new year.”
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Shroot said financial counsellors saw people “getting into trouble” with buy now, pay later services at all times of the year.
“We often see clients who have at least five buy now, pay later products,” she said. “It’s very easy to get into a debt spiral, where the repayments quickly become unaffordable when the person is relying on debt to pay debt.”
