How to avoid a debt hangover as Aussies spend $23 billion

Aussies set to spend up big in the post-Christmas sales should create a budget and keep track of their spending if they want to avoid a debt hangover in the New Year, RateCity warned.

According to the Australian Retailers Association, Australians are estimated to spend $23.5 billion in the post-Christmas sales from Boxing Day through to January 15.

While credit card debt has largely fallen throughout the year, summer is traditionally a time when people rack up debts they can’t afford to repay.

RateCity.com.au analysis of the RBA credit card statistics for personal cards found Australians paid $486 million in credit card interest across January and February of this year, with credit card debt accruing interest reaching over $17.44 billion in the month of February.

Since then, Australia’s credit card debt has fallen by $558 million, with the latest credit card bill clocking in at $16.89 billion in October. However that is likely to rise after the silly season.

That said, it’s not just credit cards stinging shoppers. A 2022 RateCity survey found 41 per cent of buy now, pay later (BNPL) users found themselves in some level of financial trouble using these services.

RateCity research director, Sally Tindall warned consumers not to “blow a hole” in their budgets in the Boxing Day sales.

“Nabbing a bargain might be fun, but…