Is it Too Soon to Talk Christmas?

Posted on October 9th, 2013 · Posted in News

It’s either good news or bad news, depending on your outlook, but there are less than three months until Christmas.  October is the ideal time to kick start your plans for the traditional spending spree, especially if you want to avoid a hefty debt hangover.

Financial research shows Australians racked up more than $22.5 billion on credit cards in the lead-up to Christmas last year and took out a further $757 million in cash advances.  The earlier you start to budget, the more money – and stress – you’ll save.

Further research indicated that Australians planned to spend around $511 each, or $8.5 billion as a nation, on Christmas gifts however, a third felt pressure to spend more than they could afford, with around half planning to use a credit card to cover the gap.  This year could be another cash-strapped one for many, but with a bit of forward thinking you can have the Christmas you want for less.

Consumer Action Law Centre spokesperson Denise Boyd says now is the time to work out your budget and plan what you’re going to buy.  “Make a list of all the people you plan to buy presents for so there are no unexpected costs,” she says.

“Where possible, avoid putting purchases on credit – other options such as lay-by are far cheaper and have less risk.  “If you do need to put something on credit, make sure you think about how and when you’re going to be able to pay it off. And try to pay off your debt as soon as possible to avoid having to pay interest on top of the principal.”

We’re here to Strengthen Your Financial Future and make sure you head into the New Year off on the right foot.  Contact us today for a FREE finance review BEFORE the hangover begins.