The findings from comparison site Finder reveal that approximately eight percent of the Australian population, translating to 1.7 million individuals, are expected to incur credit card charges in 2025. Each person is estimated to owe an average of $1,634, leading to an alarming national total that can weigh heavily on household budgets.
Among those accumulating debt this Christmas, around 688,000 people reported they would require about five months to settle their outstanding balances. In contrast, a significant number—over 300,000—anticipate carrying debt for over a year. Even more worrying is that 15 percent could still be struggling with holiday debts by the time next Christmas rolls around.
Finder’s personal finance expert Sarah Megginson asserts that the consequences of holiday overspending are likely to extend well into the next year. “Millions of Australians have entered 2025 already burdened with debt,” she emphasized. The easiest trap to fall into during the festive season seems to be the allure of credit, which can lead to substantial financial strains later on.
According to the research, young Australians from Generation X are the most prone to overspending, with 11 percent admitting they will enter Christmas debt compared to only six percent of baby boomers. This suggests a generational divide in spending habits and financial management.
As expenses continue to mount, Finder urges individuals to reconsider their financial strategies. For those dealing with credit card debt, Ms. Megginson pointed out, “Interest-free balance transfer credit cards, with a small transfer fee of one to two percent, are available for up to 30 months and could be a lifeline for those who overindulged during the holidays.”
However, it isn't just Finder that raises alarms about holiday spending. Research from Canstar indicates that an estimated $86 billion will be charged to credit cards during the months of November, December, and January alone. This surge raises concerns about the capability of many borrowers to repay these debts in a timely fashion.
Canstar's data insights director, Sally Tindall, elaborated that “Australia’s total credit card debt on personal cards has increased every January for the last nine years, reflecting households’ ongoing struggle to offset their Christmas expenses before the grace period on interest payments ends.”
With the financial hangover that follows the festive season, financial experts recommend proactive measures to regain control. “After a long year, it’s easy to loosen the purse strings during summer. However, starting 2025 with lingering debt could weigh heavily on your finances for months, if not years,” Ms. Tindall cautioned.
As Australians face the consequences of holiday borrowing, the conversation around responsible spending becomes ever more relevant, especially as they seek to balance the joy of Christmas against the weight of financial obligations.
These insights draw upon findings from the original report by Cameron Micallef, which highlighted the critical nature of understanding and managing seasonal spending effectively.
